The Washington herald., 1922-10-17
Europe Able to Pay Debts to America
Secretary Hoover Tells Ohio Republicans
Cancellation Would Whole Fabric
tonal Good Fa-Suggests Allies Should Not Ask Further
Postponement of Interest Payments.

Continsed from Page One.
Its hard-working population. its
tremendous Industries. its enormous
productivity. and its magnificent in
telligence. its fabulous development
of skill and scientific knowledge.
are vital forces that must win II
they have half a chance.
Must visio. Problems.
problems that we must vision over
be obscured by huctuation in ex-
balances in terms Of war and de-
preston. Europe has made great
economic progress since the armis-
tice. Its troubles today are solely
In the political and fiscal field. Her
social organization. her agriculture.
industry, transportation. and COM
merce have found extraordinary re-
Operative powers from the depths
Of disorganization and famine of
1919.
These loans to twenty nations
amounted to about $4,000. 600 900.
and were nearly all demand obliga-
tions. They now amount to $1l,500,-
100000 in principal and accrued in
terest. for interest has been practi-
cally suspended up to date. The
terms OF repayment were to be de-
termined by Congress. and Congress
has laid down the conditions under
which payment can be extended
over e. term OF rs years. 1t is the
duty of the funding commission to
see that these terms are carried out,
and Of course no alteration would
be possible except through action OF
Congress.
Phases Require Emphasis.
There are certain phases of this
discussion that seem to me to re-
Quire emphasis.
First-These loans are ,,ften
spoken OF as debts to our govern
ment. They are. in fact. debts ow-
Ing to our taxpayers. These loans
we.> made at the urgent request Of
the borrowers and under their SOL
emn assurances Of repayment. The
loans were individual to each ma
tion- They have no relation to other
nations or other debts. The Ameri-
can taxpayer did not participate in
reparatfons and acquired no terri
tory or any other benefits under the
treaty as did our debtors. There is
no question as to the moral or con-
tractural obligation. I do not be-
lieve any public official. either of
the United States or any other coun-
try. could or should approve their
cancellation. Certainly I do not.
Second-With the exception of
minor amounts. perhaps 5 per cent,
/ am convinced that these debts
can be paid in some reasonable Pc
rlod of time without realization OF
the oft-expressed undue strain on
the debtor countries or the threat
Of flood Of goods from debtor coun-
tries In such quantity as would
endanger employment of the fac
tories and workmen of the United
States. i am convinced that in the
arguments put forward in this con-
tention some very important con-
travening factors have no. been
given sufficient weight.
Proposals Outlined.
"Third-The proposals for further
postponement of payment Of inter-
est for a certain number of years
arise from the belief that certain
countries cannot physically make
these payments at the present time
without undue strain, or that post
ponement of interest would contrib
ute to general economic stability
and the more rapid recovery of
these countries in which everyone
would benefit. The British do not
make claims for such assistance
from us and are arranging their
payments. This covers some s4,75o,.
100000 of the total debt and thus
clears up nearly one-half Of the
problems at once. The proposition.
therefore, narrows itself to debtors
on the continent.
Our annual payments from the
whcle OF our continental debtors
would amount to a total of about
$3.50. 100000 per year for interest
and amortization. The burden of
payments falls with different weight
upon each of the nineteen differ
ent debtors. omitting the possi-
BILE per cent that IL hopeless Of
collection, IT will be found that
respective annual payments due to
US from different countries vary
in their burden upon them from
to IL per cent of their govern
mental income.
"Fourth-If there he sorne of thesa