Evening star., 1922-10-04
BRITON URGES U. S.
TO WAIT ON DEBTS
Continued from First Page.) }

! (COnt1nueQ from + flFSt fdSe.l
German foreign trade. We must re-
member that an increase in her ex-
ports will only find funds for repara-
| tionS If there is no corresponding
increase in imports. Payment of her
Indispensable imports must be the
| first charge upon the proceeds of her
ance, the eXportable surplus, which
is available for reparations."
Germany has no present capacity
to obtain surplus from the export
] of goods, he argued. While it had
! been suggested that the German gov
her people were adequately taxed.
| Mr.. Mckenna said, he failed to see
! how additional taxation can increase
foreign trade and provide a large
| eXportable surplus. The taxes would
be paid in marks, he said. and wheth-
er the marks are derived from
avowed taxation or from concealed
| taxation through the use of the
printing press. they are in neither
| case a currency which would be ac-
cepted in discharge Of foreign liza
bility.
Would Believe Pressure.
| Many Germans possess foreign
! assets, he said. They have invest
| the proceeds of the sales of marks s
which have been flung on foreign
| markets when the mark deprecated
| in value under pressure of the repair
| alton payments.
Relieve this pressure" he said.
land the mark would Immediately
! improve. The mark has far great
er value in Germany than it has out
u h. h.l. of
| egn assets would have a clear ad-
vantage in selling them TO their gov
! ernment.
| Il believe it would be safe to put
| the total value of these assets at not
! less than a billion dollars. What
| ever this amount may be, however,
| Germany could pay it. provided the
| fall in the mark was arrested.
THE creditors would gain by
abandoning the attempt to obtain
other money payments for perloq
of at least, three years, and | am
! quite sure the world as a whole
would be an immense gamer in the
general stabiliZation of exchanges
which would ensue upon an arrest
| of the fall in the mark. But no So
possible unless political consldera-
| tons are subordinated to economic
facts"
Touching upon the French debt to
the United States, in which Great
| Britain is also interested as French
creditor, Mr.. McKenna stated that
Frances external debt is far too
| great in relation to international
trade possibilities. Viewing the sit
uation from the standpoint of 1914
and peace time conditions, he assert
ed that it is recognizable that France
has no trade surplus or reserves of
accumulated and exportable wealth
to enable her to meet her present eX-
ternal liabilities. The mere endeavor
of France to extend her foreign sales
to the required degree would disor-
ganiZe the trade OF the world, ne
maintained.
The inevitable conclusion is he
continued that these international
debts are far too great for the ca
pacity of any of the debtor countries
except England. She alone in her ac-
cumulated foreign investments has
adequate resources with which to dis
charge her liability to the United
States Of the others. France has the
greatest Irs~urceS, but they are, L
believe. quite insufficient to meet her
obligations.
'IShe whole subject requires a ra-
tional reconsideration by the credit
ors, who must keep steadily in view
the immediate effect of the payment
of these debts on the general trade
of the world. The creditor countries
will obtain greater advantage from
trade prosperity, which will assure
full employment in their factories and
workshops, than they can ever re-
ceive from the precarious payment
of these debts
Mr.. Mckenna stated as his con-
clusion that England has the capac-
ity to pay the United States interest
and sinking fund on her debt. but
that none of the other debtors is in
position to meet more than a small
part of it's external liabilities In the
existing situation in Europe a def
mite postponement of any payment by
them Is desirable in the interests of
all the parties, he said. The actual
amount which the other debtors could
ultimately pay should, as in the case
of Germany, be ascertained by in
uuiry into their eXportable surplus
at a full and frank conference be-
tween creditors and debtors.