The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1922-12-14
u. S. Holds
Allies Must
Pay Debts
Government Not Concerned
in Any Deal Between Eng
land and France-Will
Avoid Entanglemcnts.
Burton Proposes Help
By ARTHUR SEARS HENNING.
Omaha Bee Leased Wire.


Washington. Dec. 1S.-The deter
mination of the Harding administra
ton to avoid ENHANCEMENT in Euro
pean affairs has not been weakened by
the latest maneuver of allied chaneef
lories to draw the United States into
a deal providing for the cancellation ol
war debts contingent upon reduction
of German reparations due France.
With whatever deal of this sors
England and France may make ths
United States is not concerned, bul
from tho viewpoint OF American inter
ests the administration regards Ger
man reparations and allied war debt.
as distinct matters. The administra
ton holds that the debts should be
paid and that German reparationt
should be adjusted on basis OF Ger
many's capability to pay.
Would Aid Europe.
That the United States resume f
nancial aid Of Europe, however, as thu
debts are paid is a proposal made by
Representative Burton. republican
Ohio, a member OF the debt refundint
commission. lie suggested that. while
the principal of loans repaid by the
allies is used to retire Liberty bonds
as contemplated by law, the interest
be reloaned under proper superyi.
sion for security for purposes OF ex.
pansion and betterment in the coun-
tries which pay" Such loans. he
holds would enlarge the resources of
debtor countries and enhance their
ability to meet their obligations.
For Europe, the remedy is not the
cancellation Of indebtedness TO us,
but in the adoption of more rational
fiscal policies, the abatement of mil.
itary expenses and in the substitution
of relations more sensible and more
just for the present attitude of dis
trust and repulsion," said Mr.. Bur
ton.
Opposed to Cancellation.
The congressman declared himself
"unequivocally opposed to cancella-
ton" of the s1t 900 900, 600 allied debt
to the United Estates.
First and foremost" he said, there
| Is a sanctity in international obliga-
tions which canot be ignored. The
| amounts required, aggregaung more
than $4,000, 900 900. were obtained
from the people and with no small
degree Of difficulty. Tho legislation
authorizing the loans to foreign couD-
tries provided for the application of
repayments toward the payment of
obligations incurred In making them.
"Generally speaking. the provisions
as to the term and rates OF inter
est We're intended to square with "
those provided in bonds taken by the
people of the United States. There
| was no thought of release. The ques-
ton Of cancellation Is not by any
means a new one. Schemes were ad-
vanced in Paris when the treaty was
under consideration for an apportion-
ment of the cost of war on the theory
that all were engaged in q common
enterprise. All these were flatly re-
| jected. At the came time the Treas
uary department at Washington dis
tinctly stated that propositions for
release could not be considered,
Increase i'm Taxation.
CAS- further argument against can.
ctildtlOIr IL suouiu bo stdteu THAT iic
proportionate Increase since 1914 of
debt and taxation in the United
States has been greater than that of
our principal allies who were engaged
in the war.
'1t is perfectly manifest that with
the conditions now existing in Europe,
il these debts should be released, very
large amounts which otherwise would
be paid upon this Indebtedness would
be utilized for increased military and
naval armaments, which would create
a constant threat of other wars.
Still further, in the great war the
United States was not subjected to the
same imminent danger as her allies.
In the peace she sought no acquisition
Of territory and large indemnities were
not demanded.
The fact is often overlooked that
eign governments after the armistice
of November IL, 1918, o very consider
able amount for purposes other than
the prosecution of the war. I may
offer another suggestion upon this
subject. England, proud of her credit
for centuries, has signified her inten-
tion of meeting her obligations to us
and already paid, within few weeks
past, 100000, 900 into the treasury of
the United States. Shall there be dis
elimination against the one country
that is coming to the fore to meet
her obigations?"