The New York herald., 1922-02-10
CANCEL WAR DEBTS,
KAHN URGES ON U. S.
Banker Says Lifting Load
From Europe Would Bring
Fabulous Sums Here.

The cancellation of all the allied war
debts without discrimination under four
conditions was urged last night by
Otto III. Kahn in a review OF world af-
fairs before the National Institute of
Social Sciences.
Mr. Kahn, speaking in the ballroom nf
his town house at HOO Fifth avenue.
said that from moral and business
point OF view" this country ought TO
cancel these debts.
I'VE ought to cancel all of them" he
said, mot merely those of the nations
least able 70 pay them. 1t would be un-
just to hold Great Britain, for Instance,
to her obligations and sweep away those
of other countries which have not bur-
dened themselves so heavily with taxa
tion..I think every nation should abolish
every war debt.
This move would be the best invest
ment this country has ever made. II we
lift this immense load from Europe it
will yield in dollars and cents fabulous
sufn quite aside from the gain in reputa-
tion for honesty, fairness and generos-
ity. We are rich enough to do it and to
do it gladly"
Mr.. Kahn made 1t plain that he re-
garded the debts of the other nations to
this country as legal and just. and
emphasized that such a great gift must
be made only after assurances that 1t
will be used not for the pleasure or
ease OF the world. but for its welfare.
'"rhere are four stipulations which ]
believe should be made to insure the
effect of this action" he said. '"The
first Is that the reparatio question be
settled in way sensible people consider
Il final, real and possible settlement.
The second is that the budgets OF the
European nations shall be restored to a
state OF equilibrium. This means that
militarism must go.
"The third stipulation IS that barriers
OF trade and free intercourse thrown
wantoniy and carelessly in the way must
be swept aside and Europe so reestab-
lisred that trade may move freely again
across the frontiers. | 40 not advocate
free trade, but simply the abolition of
trade barriers. And the fourth condi-
tion is that foreign exchange be stabil-
lied. This is more psychological than
an economic question
MIR. Kahn favored the attendance of
the United States at the Genoa confer
ence, saying:
Il believe it is our duty and to our
interest to enter the conference If tive
things are agreed upon beforehand. One
is that we can talk, American fashion,
beads as affecting the economic situa-
faon of Europe. and other nations
equally may say what they wish. IL
certain nations demand severe restric-
tions ON the matters 10 be discussed,
reparations, for instance we enter the
conference in the situation OF physician
summoned by other doctors to bedside
consultation and told that although his
opinion is wanted he must not examine
the patients heart What good would
the diagnosis and remedies Of this physi-
clan be-?
"The other agreement concerns Rus
sia. Shall we sit down at the same table
with Lenine and the other Soviet leaders
who may attend the conference? L will
say frankly in this connection you can't
get even with an earthquake. ] think
we should be willing to sit down with
them, provided certain preliminary con-
tiitions are fulfilled. Lenine should agree
to the stipulations made at Cannes and
to others. Those stpulations at Cannes
were too selfish; they had not enough to
do with the Russian people themselves
and too much to do with the acquisi-
tveness of the other nations.
II think the thing TO do is TO help
the Russian people to get rid OF their
misery and misgovernment. We should
not recognize the Bolsheyists until the
Russian people themselves have voted
to recognize them. We should try ia
restore the Russian peoples position
among the self-respecting nations and
open their great productive resources
God knows the world now needs the
opening of its productive resources''
Mr.. Kahn, in speaking OF the Wash
ington conference, said that it was a
spiritual triumph and tri imph of the
American way OF doing things.
The reason why the world was in
mess economically. politically and soci.
ally he said, was due about 40 per cent
to the war. 25 per cent. to the peace
end 35 per cent. TO things due to our
own cussedBess.' IN which latter cate
CORY he put his discussion of the war
debt.
. William e. Redfeld. who was Secre-
tary of Commerce IN the Wilson Admins
tration, praised President Harding and
the work Of the conference. Emory r.
Johnson, retiring president of the insti-
tJte, presided.