Evening star., 1922-02-19
SEES EUROPE UNABLE TO PAY
DEBT TO THE UNITED STATES
Harvard Economist Regards Senate Com
mittee's Original Settlement Proposal as
Indefensible-Local Financial News.

future time would food our markets
with foreign goods and ruin our eX-
port trade. Granting. however, that
an eventual excess of imports need
possess no terrors for us and might
indeed be eminently desirable, we
may we'll ask ourselves whether we
wish to see this change occur sud
denly, without proper opportunity TO
adjust odr industry to 1t.
There is a more immediate objec
ton to interest payments by the al
lies at this time than either of those
yet given. The first effect of the pay
ments would be to upset the foreign
exchanges. which. with the eEccp-
tion of the German mark. in recent
months have been gradually i'm
proving. The spectacular fall OF the
mark since last summer provides
striking object lesson of what hap
pens when huge International pay
ments are undertaken By nations Oh
a deprecated basis II is beyond
question that the chief cause of the
depreciation of the mark this past
year has been Germany's effort TO
meet the reparation payments.
Would Result in Confusion.
The confusion that would be caused
in the exchange market by immediate
interest payments from the aIifes 4"
this country is in itself a sufficient
reason why these payments should
time. even if it We're proved that
Europe can afford to pay and our
own country to receive payment. II
is not improbable, moreover. that in
the first instance the payments would
be made in part with gold. We have
just witnessed in the past year au
unprecedented flow OF gold from the
European countries. which had most
need of gold. -k aNS United States.
which befe.e me past war fhGjv be
gan already had about one-third OF
the gold stock of the world.
France Not Ready to Cancel.
For myself ] am yet unable to see
the necessity for a final decision IN
favor of cancellation at this time.
While strongly opposed to immediate
payment. as being both undesira bic
and probably impossible, L am not
convinced that the situation, whether
Viewed from Europe's standpoint or
our oWn, clearly calls for cancella-
ton Of the principal or interest. /
cannot but believe that the recent
ipleas by some economists and other
persons for total and immediate can
collation. do more credit TO their
hearts than their heads. 1t has been
suggested. for example, that cancella-
tion would be interpreted in Europ"
as a generous act on our part and Il
timely proof of American good Will.
IL must be surprising to people who
advocate cancellation on such grounds
TO flnd some French writer's display
ing & distinct feeling of suspicion
toward it Does not the cancella-
tion of Frances debt to US on IL
ground of Frances inability to pay
| imply like obligation upon Fran
10 forego the reparaticns payments?
frenoh writers are not slow to sce
this implication
Institute Chapter Banquet.
FINAL arrangements have been
completed for the eighteenth an
nual banquet of the Washington
ing at the New Willard Hotel Satur-
day night, according to w. A. Dexter
of the Riggs National Bank, who is
the chairmen of the committee in
charge of the affair.
Mr.. Dexter said yesterday that
to attend. and that after an address
by one speaker only. the room will be
cleared for dancing.
Roe Fulkerson will preside as
toastmaster. and all officials and
directors of the banks of Washington
cured form r. Jessie CLANCY at the
Commercial National Bank.
Upper Marlboro Notes.
Word was received last night that
the Southern Maryland Accident and
Improvement Association, formed TO
raise funds to erect a community
house in Prince Georges county, held
| its annual meeting Friday.
Continued efforts will be made to
raise the balance of $500 necessary TO
complete the purchase of the site,
which was negotiated about nine
months ago.
The association voted to give an
oyster roast, supper and dance III
Mount st. Mary's Hall, Upper Marl-
boro, tomorrow night
When the community hall is COM
pleted, it was pointed out that ii
will be used for educational and So
| cial purposes.