Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-08-04

TN \ NATION occupying as Great Britain
i does the role of creditor and debtor in
relation to several great Governments of the
world, it is not surprising to find dispo-
sition for wiping financial states clean and
effacing at once both claims and obligations.
1t is the principle involved in such an
imagined act which Lord Bafour has
sought to justify in his note to the Allies,
containing an appeal for lone great trans
action to settle the problems both OF war
loans and of German reparations.
A keen conception of national self inter-
est is manifested in this proposal. AS
special pleader for that Government in
which he occupies a Cabinet post, Lord
Balfour has made his points with charac-
teristic adroitness. 1t is ms n recipe for
what would be intended as world accom-
modation that the argument bctrays defects.
In the first place. the positions of the
United States and Great Britain with re-
gard to debt claims and loans are by no
means identical Alone of all the Allies 10
this situation, the United States is a credi-
tor and nothing else. The balance which
might be attained in England. and to some,
though much less. extent in France by
general absoution deal. could not be
achieved in this country
Lord Balfour's intimation that. in the
event of the adoption of n general rancella-
ton program, Great Britain would be- will
ing TO forgo ''all further right to German
reparation" has more the sembance than
the reality of lofty idealism. Even if the
debt of Great Britain to the United States
and the debts of other Allies to Great
Britain were extinguiShed in a comprehen-
sive settlement, Lord Balfour's country
would still be we'll paid
Compensation has already taken the form
OF German ships and large territories for
merly German colonies.
Not all Americans are inclined TO view
the debt question with the merccnary harsh.
ness implied by Lord Balfour in his note.
which is plainly as much designed for con-
sideration by the United States as by those
Governments to which it is directly ad-
dressed. The dispatch of copy to Wash
ington is further confirmation of this fact
The view has been held in some quarters
that the United States war loans aor y,l,e
Allies were in way contribution to VIC
tory. and that, with that object attained
demand for repayment is as indefensiblc as
would be demand that We should b" rcm-
bursed by our fellow belligerents for the cx-
penscs of our armies during the confic,
This is the extreme idoalist view. strongly
countered by the conviction that the condi-
tions of the loan were fully understood M the
transacted should be paid. 1t is un0ues-
honably the opinion of Congress. and seems
to have been that Of the Wilson Admins
tration and of the Harding Administration
thus far.
What most Americans would most earn.
estly desire to see before the great trans
action formula is accepted is a modifca
tion of excessive and uncolectable repara =
tion claims. some indication in Europe of
the adoption of sound financial ideas and.
most of all. n marked reduction Of EurOpean
ornaments and military establishments
This docs not mean. of course that
France should not be indcmnified for her
losses through German depredations. hut
that she should view the principle of com
pensation without fantastic chauvinism. As
for Great Britain, it would be welcome
news that she has delcted the prepostcrous
pension item from her reparations bill.
II Europe were reconstructed on sensi
Bile iRanciat basis. and practical securities
OF peace were visible. Americans might in
deed feel that they had been compensated for
their war loans.
In urging cancellation and modification
OF indemnites,- Lord Ralfaur nronasss A
path to world rehabilitation that has ar.
tractions, but a path which cannot be
Travelled until it is cleared of many OBJ.
stacles still extremely formidable.