The Washington herald., 1922-03-18

the cancellation of the tremendous debts due
the United States from the allied nations and
contracted as the result of actual prosecution oi
war or conditions contingent upon prosecution
Advocacy OF such course is to bring out
Of public disapproval beside which the efforts
OF lusty-lunged collcgians at great athletic
test sink to whisper.
Yet calm scrutiny OF world conditions with
reference to actual potential interest therein
has convinced many of the wisest economists and
financial leaders of America of the necessity oi
such cancellation-with definite and accepted stipu-
latons as to the conduct of the nations thus re-
heved as an indispensable prerequisite.
When banker of the stature of Otto H. Kahn
member of the great firm of Kuhn, Loeb and Com
pany, rises to speak upon the dominant subject OF
economic ameEoraton, one must give ear. Ad-
dressing the Advertising Club, of New York City
recently, Mr.. Kahn placed himself on record as
iavoriEg that we forego the payment of the billions
owed us. 1t should be noted at once that he
aigns himself with the group who would demand oi
Europe in return certain pledges more valuable by
lar than the promises of payment now held by the
United States government, valuable than would
be trc golden food returned to and locked in
our cSfers-were payment possible.
Many points in his well-consdered recommenda-
tons particularly worthy tf note.
The idea that we should abjue payment on the
ground that We forced into the war; and that
the debts should therefore BE written off as part
OF our war costs, simultaneously with similar writ
ingoE all around among the allied nations he held
unjusti6abe. .F'. -
America fought" he declared, mot as Ambassa;
dor Harvey nglorousy and incorrectly put it befor.
English audience, because she was afraid not to
fight Her maip impulse in unsheathing the sword
arose from the fact that her nrany-rooted people
had become finally, though tardily convinced
that the of the allies was that of right and
liberty He reminded his hearers that the allied
nations took material compensation from the van.
qushed to the extent that there assets to dis
tribute territorial, physical financial" and that
America asked nothing and received nothing oi
the material spois of war"
Attacking the problem from the angle OF repara,
tons totals, Mr.. Kahn contcmning the treaties
cluded at Versailles in fashion which might moi
hnd agreement in many quarters, nevertheless in.
Stsnced with some right that the aggregate ndcm.
mites had been increased of all reason by the
inclusion OF German liability for military pensions
and separation allowances" thereby doubling the
figure. The fixed in the London ultmatum OF
May, 1921, he believes competent and candid per-
everywhere" hold greatly beyond Germany's
capacity to pay by whatever means" Ii it were
possible for one nation to pay to others I3zoooooo
marks gold its equivalent he said at could
industry and commerce of the recipients and vo-
lently upseting the natural and proper operations
OF economic intercourse among the countries OF
the world"
Il do not speak" he fastened to add this man
born in Germany but always to the forefront in fos-
tcring compact Americanism from any tender
regard for Germany. No atonement imposed upon
her could exceed the measure of her fearful guilt
J do speak from due regard for plighted faith, as
expressed in the terms upon which Germany laid
down her arms, and from the matter of-fact con-
sideration OF what is economically practicable in
stead OF being is the present status economically
visionary
II VIC strive secure decrease Of the repara-
tions, he continued, the allied nations, especially
France and Belgium will ask with almost unassail-
able logic: IF you wish to abate our claims
against Germany what about your claims against
u.s."
This brought Mr. Kahn to the crux OF his
speech delivered in these words:
Il would cancel the allied war debts to America
Ito the extent that they are war debts) not as a
Tree gift, but in consideration Of and return for
adequate pledges and appropriate action on the
part OF the nations concerned, leading to the eIin-
instion far actually possible or at least, the
prompt and essential mitigation of the remedable
circumstances and conditions which keep Europe in
turmoil and prevent it from exercising its normal
and natural functions either a consumer or pro-
=nrrr. Subject to that consideration in each in
stance | would cancel all the allied war debts to
US, regardless of the solvency of the nation con-
ccrned, and / would impose the stipulation that the
war debts which the various allied nations owe as
between themselves, be likewise cancelled"
These loans, he emphasized, are now frozen
credits. By such process OF remuneration and
placing of bonds the nations benefited, they
would be converted into fructifying current -
They would yield more, he said he believed, than
sould hope to realize from the attempt to col
IeCt ,ither interest principal
Now. what did Mr.. Kahn imply by "elimna-
..ttesl oS prompt and essential mitigation ol the