The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-11-07
HOW SHALL WE BE PAID?

When European, nations borrowed
money from this country to carry on
the war they signed certificates OF IN
debtedness reading as follows: such
principaI sum and the interest there
on will be paid without deduction for
any taxes, present or future, In gold
coin of the United States of America
of the present standard of weight and
fineness at the subtreasury of the
United States in New York, or. at the
option of the holder, at the treasury
of the United States in Washington"
But since We have both the gold
and the notes it is difficult to see how
we can enforce the contract unless we
buy their goods.
In recent official utterances, the
spokesmen OF the~administration have
made it clear that it will be the fixed
policy of the United States to oppose
any movement calling for the cancel
lation of foreign Indebtedness to US
incurred during the war. and that
payment on these obligations will be
insisted upon. 1t is made plain, how
ever. that the United States will not
attempt to force immediate or early
payment, and that all due ieniency as
to time will be accorded our European
debtors.
1t seems pertinent. says the Woll-
man Review, to call attention to q
striking inconsistency in our attitude,
considering the question from the
standpoint of insisting that our debts
be paid, but denying the debtor the
only means at his command for MAX
ing payments. Obviously, the indebt-
edness cannot be Hquidated thru ship
ments of gold. It might require cen
turtles for European nations to find
$40. OOO. 100000 worth of the yellow
metal to send to us, and its receipt
would merely give us an embarrass-
ment of riches. The only method by
which payment can be made is in the
form of goods or services. This'point
was clearly brought out in the ad-
dress of Sir George Paish before the
American Manufacturers Export as
ISOLATION. The application of the
principle involved was not confined
entirely to our own methods and at
titude. 1t was treated from the
standpoint of present day Information
al policies and the mistake which
various nations are making in their
efforts always to be sellers without
being buyers Among the salient
passages of the address is the fol-
lowing extract:
"A creditor nation can not refuse
to take payment OF it's debts in the
goods or services which the debtor
nations can supply either directly or
indirectly; and therefore the endeavor
of the American government to pre-
vent the import of goods and produce
by erecting tariff or other barriers
for the purpose of keeping out the
goods OF the other nations is action
which 1 am fully convinced neither
they nor the American people have
fully considered"
In this connection. it might be
pointed out that we made practically
no loans of money to our European
debtors We merely established cred
its for them that enabled them to get
certain amount OF goods, chiefly
supplies for the prosecution of a great
war in which we were vitality inter
ested- The obligations. in a money
sense. were simply debit entries
against our associates in the war, and
what they really obtained from US was
goods Yet we are refusing TO ac-
cept payment in kind