The New York herald., 1922-12-23
ana .ll the aeeompanyIng trade dspres,

and all the accompanying trade deprcs'
SION"
Senator Borah quoted from .Prim,
Ministers and other high officials tc
prove that England France. Russia and
Germany are unable to meet their debts
In other words" he added. "all o.
the great powers of Europe are nov
ether bankrupt ana confessedly so. oi
are approaching bankruptcy.
This is the condition which con
fronts us at the beginning OF 1928; $3.50
c00.00o,0oO OF indebtedness resting upon
the great nations; s22oo1 10000 OF II
ours, with the strongest powers IN the
world. outside of our own. announcing
they are unable to meet their indebted
ness. These figures disclose a tendency
ia our own national life the evil con-
sequence OF which, unless checked, no
man can foretell adequately. IL is
rational question. a world question.
1--WE know there is no enemy OF
orderly government so subtle and still
50 powerful as excessive taxes. Thero
is no adversary with which free institu-
tons have had so often to contend and
with which they have contended so
Lnsuccessfully. Under our governmenta'
theory. the contentment of the citizen
and his prosperity IL the foundation on
which the whole structure rests With
cut that the entire fabric fails.
''We ought not 10 give over in one
single effort our determination TO stay
competition in armaments or to stay
the establishment Of great armies.
I'VE hear great deal these days
about propaganda from Russia TO under
mine the character and stability and
patriotism of the American citizen. But
that which Is making Bolsheviki in this
country Is not in Russia, II is here.
Take off part OF the burden which now
rests on the taxpayers OF this country,
give them relief. an outlook, and you
ran preach Bolshevism until you are
black in the face and it will not disturb
their poise one particle. The relief must
be found closer home and in some way
that relief must come.
''The nation which will meet the test
OF the future, whether there be a de-
nand. OF war or demand Of peace. will
be the nation that is economically
strong that is economically powerful. a
nation of contented and prosperous
people. The disturbances of the world
to-day are less between nations than
between peoples and their governs
ments."
Il. =. Has No Fixed Plan.
1t was emphasized to-day by Govern
ment officials that it is not the intention
of the United States Government TO sug-
gest that repnrations should be settled
in any given way, much less by Ameri-
can umpires.
State Department officials, while not
deprecating efforts of American business
men in the interest of n reparations set
tlement and European reconstruction,
drew a sharp distinction between these
organizations and governmental action.
In its efforts TO be of service Washing
ton. II was said, must proceed from the
premise that the European nations in
terested in reparations have treaty
rights and rights of consent TO be re-
garded. II was made clear that political
and diplomatic action to bring the
Powers into accord on matters of pro-
cedure must precede a readjustmen. OF
repnrations also that the last thing the
Administration is thinking OF is 10 sug-
gest that mediation be left TO an Ameri-
can commission or that this Government
should assume the role OF umpire.
There is no effort here to deny the ex-
tent to which this Government Is con-
cerning itself with the European finan-
cial tangle. nor yet TO discount the hope
that American participation in the dis
cussions in progress Will help toward a
solution.
France Main DiMcuIty.
It was indicated that the chief diff
Guilty is in obtaining a concord OF the
Powers on how to proceed. This II is
understood. refers 20 getting France to
reduce the reparations settlement of the
Versailles treaty without guarantees that
a new reparations settlement would not
involve the difficulties OF collection here
tofore encountered,
If an accord on this could be secured
II would not be difficult TO make a new
adjustment Methods to this end are
among suggestions made TO the State
Department.
The commission idea sprang from the
belief that experts, rather than poll
ticians, should decide on the maximum
Germany can pay. but IT IL manifest
from what the policy OF this Government
has always been that any such commits
sion would be international in char
acter and would include the representa-
tives of debtors and creditors. IL also
has been suggested that the conference
OF bankers which met in Paris last June
be reconvened. None of these methods
could take definite shape until po-
1ificaI accord Ia reached.