New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-08-05
Debt Gift Not
Constitutional.
Institute View
Willianstown Opinion Is
Sums Might BE Reduced
to Hasten Liquidation;
Crosby Warns of Haste
Fix Time First, He Says
McAdoo's Aid During War
Urges Early Refundins;
Differs f r. O m Bankers
By Arthur S. Draper

INC members of the Institute of Pol
ltics showed the keenest sort of in
terest to-day in the discussion of the
cancellation Of nter-Allied debts. un-
der the leadership of Oscar T. Crosby,
former Assistant Secretary of the
treasury, who speaks with much au-
thority as he was the American gov
ernmcnt official who, under Secretary
McAdoo, was in charge of the arrange
ments made with foreign governments
during the war.
In Mr. Crosby's opinion, the whole
question of cancellation cannot be con-
sidered satisfactorily without fixing a
time in which both the separations
and debts are to be paid and also the
rate OF interest to be charged on them
Apparently the general impression
created by Mr.. Crosby's remarks was
that this was not the proper time to be
stampeeded into hasty decision He did
not use these words, but he offered the
suggestion that there were many sides
to the question to be considered. He
emphasized the fact that while England
is only now waving her claims to rep
arations on the score Of pensions,
America took a generous position at
Paris and abandoned her claims at that
time. The present situation he thought
might give pause to Americans and in
cline them to ask themselves whether
it was their policy to take similar steps
in that direction without giving them
the fullest consideration.
Would Make Interest Small
What Mr.. Crosby is most anxious to
see is the fixing of some period, rang
ing perhaps from thirty to sixty years,
in which the various debtor countries
would make annual payments of some
amount. He is not particularly ex-
ercised over the question; in fact, he
thinks the interest payments should be
purely nominal.
Regarding the constitutionality of
cancelling inter-Allied indebtedness the
consensus in the conference was that
this might be a questionable action
if q proposal was made to wipe off
these debts as gift, but that reduc-
ton in them could be made as part of
a compromise for the collections.
Professor Philip Marshall Brown, of
Princeton, held that there was legal
distinction. Some of the speakers
argued that the war debts might be
divided into several groups and while
some might be collected, others should
be cancelled.
Adam Short, Canadian authority,
who is conducting round table, de-
clared that the position of the Domin-
ion was that of England. Canada, he
said, was ready to meet her obliga-
lions, but it was not quite clear just
what they were. He indicated that
there was feeling among Canadians
that money had been paid for Ameri-
90 Goods OF h;~,h 10 ,+b AZ,
that in some cases Canada had been
made to pay through the nose Mr..
Short thought it would be useful to
attempt to examine the obligations and
fix the sum more exactly.
From to-day's discussion it was
clearly apparent there is consider
able difference of opinion between the
bankers as represented by Paul M.
Warburg, and that of Nj. Crosby,
who has just returned from long
visit in Europe, during which he talked
with many high officials. The bank
ing interests, which are DESTROYS Of
floating foreign loans in this country,
feel naturally that the sooner an ad-
justment is made in the position of
inter-Alled debts the better will be
conditions for doing international
business.
Debate Sheds Light
Though the proceedings here have
no influence of an official character
they are nevertheless interesting in
that they throw a light on the diverg-
ence of views on the subject which is
the greatest problem of European
statesmen to-day.
Raymond Recouly, the Paris journal
list, lectured tonight on the French
and European revolutions. Replying
to the question, What are we going to
do with Russia?
"The only sound and practical policy
is to face the facts, to see them as
they are. The moral and material de-
struction of Russia has been SO COM
plete it is impossible to think of a
rapid reconstruction. 1t will mean
more q colonization than a RECONSTRUCT
ton. We shall have to begin by work
ing from the boundaries of Russia to
the center, from without to within. 1t
will be necessary to proceed step by
step, recognizing one province after
another, from the border of Germany,
Poland, Rumania, and proceeding from
the border of Russia.
"The countries of Europe which are
in far better and more satisfactory
condition than Russia must be cared
for and reconstructed first, that is to
say, Austria, Germany, Belgium and
especially France"
DR.. Josef Redlich, former Finance
Minister of Austria, began his series
of lectures on the historical develop
ment of central Europe this morning
before a large audience, which applaud
ed him generously at the close.