New-York tribune., 1922-12-26
Note to Senator SmoOt
Proposes Cut in Interest
Rates and Extension of
Periods for Payments
Wants America OH
ReparatiOn Board
Would Extinguish British
Total i'm AZ Years and
Give France 9 Extra

In a letter 70 Senator Reed Smoot'
Of the Debt Rcfunding Commission
made public yesterday By the Commit
tee Of American Business Men. Otto II.
Kahn offers what he believes 10 be a
practical solution Of the war debt
problem. The plan. he believes, is con-
siltent with the international policy
Of the United States and the apparent
sentiment throughout the country
against the cancellation Of Allied in
debtedness 10 America. The plan con-
sists. briefly. Of a substantial redue-
tion in the rate OF interest imposed
on the Allied governments b. this
country, an extension Of the period in
which the indebtedness must be paid
and the recognition that all money
lent after the armistice, IL used neither
In settling war contracts nor Offset by
valid counter claims. shall be regarded
as distinct from the remainder OF the
debt.
Mr.. kahn not only believes such a
settlement Is prerequisite 70 re-estab-
fishing Europe as a place Of peaceful
habitation, but that Il would be an
excellent investment for this country
aeeruing 20 It's ultimate advantage.
Favors Organized Cooperation
an common with all right.thinking
persons" says Mr.. Kahn's letter, 81
am, and always have been. ardently
in favor Of organized cooperation
among the nations in order 90 main
tain and strengthen international law
and Justice. foster understanding, fair
dealing and good relations among the
peoples and preserve peace. The treaty
makers have mishandled that fine and
universally acclaimed conception by
seeking 10 utilize it for unrelated pur-
poses.
"How could our participation in the
League Of Nations have changed the
fateful course OF events, in view of
the facts that Il is the dispensations
embodied in the peace treaties, and
particularly the provisions relating 70
reparatiOns, which we're mainly cnusa-
i've OF those events, and that the
league. Of course. has no power TO
modify those dispensations and pro-
yisionsT
With these considerations In mind,
Mr Kahn suggests the following as
the least America should do, con.
sistent with its traditional policies"
Urges Official Action by u. s.
az. / believe that the United States
should be officially represented on the
Rcparation Commission. Our govern
ment should also take official part in
the work Of other commissions Of a
similar character. destined 10 settle
controversial questions and aid tho
focuperation Of Europe. These com.
missions. in their conceptions and
functions, arc essentially akin 70
arbitration bodies.
-. A vast majority Of the Ameri.
can people, at the lat Presidential
election, pronounced their emphatic
unwilliugness-in my opinion, rightly
so-to subject this country 20 the OBJ
licatiCns and "involvements," actual
and moral, Of the League Of Nations as
Il came 20 Us from Versailles.
Notwithstanding the political re-
yersal registered al the election OF last
month, II seems 10 be generally con-
eedcd that the preponderating verdict
OF the electorate continues 10 be OPP
posed 10 Americas joining the exist
ing league.
Between" Policy Opposed
"On the other hand. there arc indica.
tions OF an ever growing undereurrcnt
OF popular feeling that 'betwi.t and
between policy acting through the in
sirumentality Of observers Is one
which hardly accords with American
dignity and which meets with intuitivc
absent from the sense Of fitness and
fair play Of the American people.
II venture 20 suggest-in the hope
Of finding myself In accord with thq
trend Of public opinion-that II has
now become fairly incumbent upon the
United States 90 indicate precisely and
officially what are the terms, CONDITIONS
and limitations under which America
would be prepared 70 take part in an
organized and permanently established
international effort, destined 10 serve
Justice and welfare, 20 aid In the mnin'
tenanee Of peace and 20 promote IN,
dcrstanding, fair dealing and good Wall
among the nations, but 50 cireum-
scribcd In is functions and powers as
20 be in accord with the spirit OF the
traditional limitations IN respect oil INC
attitude OF the United States toward
the affairs Of Europe and TO involve no
approach 10 any moral or actual inter,
ference with American sovereignty ana
freedom Of action.
"3. The United States should 9eal ~
n practical. oad-gauged and liberal
manner with the indebtedness OF the