Evening star., 1922-12-18
Why United States Should Not
Cancel Debts Owed 1t by Europe

tion program amounts to a proposal
| that practically the whole burden OF
cancellation shall be borne by the
United States. while about half the
England and France-chiefiy to Eng
! land.
But, it is argued, the unlted etateS
is a rich country and was less IN
jured than the other principal aliies
which fought against Germany. AS
to the first, it never has been heio
that because a nation was rich was
i logical reason why 1t should SUM
to being mulcted. Certaihy nred.
| Britain, when she was the cniel ele,
itor nation of the world. set no sucn u
example of careless generosity. MI
| since the war has her course "al
ranted the contention that she re-
) earded the cash and otner Iesou sI
of all the allies as in conainon dp,oen
ones. at that-for transporting our
| troops overseas to fight IN the eoi
| mon cause, and has accepted casI
settlements as matter OF course anu
as a natural closing OF a resuis'
| business TRANSACTION. ,., tn
| IT is true that we were less III :
| iured than some others OF the ma
tions which warred against Germany;
but il is true also that we got less OF
| the spoils of war. In fact. we so'
none. The entire cost OF our pa.
! ticipation is a net financial loss 10
! nc and that loss mounts high into
the billions without adding the auul
| tional billions in loans which we no"
are asked to forgive. others OF inc
allied and associated nations, lhciuu-
! ing Japan which played only minor
part, are potentially a great deaI
! ;aI,a In
| the war. They stripped Germany y,
| her colonial possessions and diVldeo
| them up among themselves SoIne
! by outright annexation ana others .
| through mandates, when ~ an
nexation by another name. Some OF
these possessions. notably those IN
| Africa, contain vast undevelopeo re-
| sources, and when 1t ts realized that
! future advancement OF the Wnite race
i must come in large measure through
| DEVELOPMENT of hitherto practically
| untouched tropical resources, II is pc
! Iieyable that the spoils OF war whlch
fell to the allies. particularly 10
Great Britain and France, Will In fu-
ture years make their actual cash
expenditures in the conflict seem In
| significant
| II is hard. therefore. to see why
| it should be expected that this coun-
try would be willing to be the one
| large financial loser among the victor
| nations. 1t Is true that this partlcu-
! lar war booty is not quick asset
which can be realized upon to meet
! pressing needs, but payment OF the
| debts owed the United States Is not
a pressing need. Certainly this gov
, ernment has not pressed any OF the
debtor nations for payment. and has
| not indicated any purpose OF doing go
The course the American govern
ment has heretofore pursued war
| rants the assumption that. upon show
| ing by any of the debtors OF inability
| to make present payments, funding
! can be arranged on a basis to defer
, payments until they can be made
without undue hardships. 1t may de-
| yelop that the debts owed us by some
! of the weaker nations may have to
/ be forgiven. or at least forgotten. but
| there is no reason why We should be
! in a hurry about wiping even these
| off our books. If we walt we may be
! able to get something in return. even
| if it be no more than assurances that
. these nations will live peaceably with
their neighbors.
! * X
| But Great Britain can and will pay
what she owes us. despite the pessi-
mistic view which Bonar Law takes
/ today. Britain ever has been jealous
of her financial honor. and never has
| repudiated an honest debt. The hon
| esty of the debt ,she owes the United
! States has not been questioned. And
it is right and proper that Great
; Britain should pay. in view of what
| she got out of the war and what we
did not get out of it. 1t would be
rather an unreasonable expectation
| that the American people should go
down into their pockets to help pay
| for the enlargement and enrichment
| of England's colonial empire.
/ Despite the embarrassments OF to-
| day. France. too. can pay in time
without undue hardships. and in the
course of years it will be found that
! the sums she is called upon to pay to
i keep her credit good are small when
| derive from development Of the ter
: ritories which fell to her in the di-
vision of the spoi1s of war. Even
| without this. readjustment and actual
! payment of reparations and reduction
in her huge outlay for armaments
most serious difficulties.
/ For Italy the promise held by the
future probably is less bright, but the
money she owes the United States
need not be an obstacle to Italy's
| economic recovery II this country is
| fore receiving payment either of
principal or interest, Italy ought to
be able to wait with equal equanim-
ity to see what the future will bring
| forth And the same is true of Bel
gium and the other countries which
| owe US money.
| Even the prospect that Russia may
eventually pay is not as hopeless as
some believe. Russia Is a country Of
| vast resources and great potential
wealth. Some day there will be an
| orderly government there, and that
government will be as jealous of its
| financial integrity as are other en-
| lightened governments.
| X + X
And now comes a final phase Of
the question which apparently is lit
tie considered by those in Europe who
are putting out propaganda for can
collation.. Unless the lessons of his
tory are not to be relied upon, unless
men radically change their natures
and nations their policies. some day
there is likely to be another great
war in Europe, and the peoples en-
gagged in it will be under the neces-
sity of borrowing money. II the
money borrowed to wage the war
lately ended is not to be repaid, is it
| likely the defaulting nations could
| find anywhere a government or a
people willing to make them loans
to wage another war? If a nation is
to be prepared to defend itself against
aggression. it IL as necessarv fbot a.