New-York tribune., 1922-10-17

ssaach nation. They have no relation to
ssslaef Aatsoas ag othaT debts. The
Aaaericas taxpayer did not participate
sR feparations ard acquired no territory
~ auy effer benefits under tht treaty
Il Gid our debtsfs There IL no ques-
som as 10 the moral or cofitractaal
oi,ligatfen. The repudiation of these
loans would undermine the whole fab
: nc Of international good faith. ] do
ndt believe as,y public o5sfcial, either OF
sfhe United States or any other ccuutry,
could or should approve their caneeila-
tion. Certainly ! ia not.
4s SECOND With TIE exception OF aassse
,ainor agaoants, perhaps 5 per cert, /
am convinced that these debts can be
repaid in soyne reasonable period Of
time without realisation OF the oft-ex-
pressed undue STRATA on the dehtsr
countries or The thrcat oil a flood of
goods frofn debtor countries in such
quantity as would eHGanges esnai0s-
Sssant of the factories and workmen Of
xts United States. / am convinced
xxat In the arguments put forward in
sffsss contention some very important
sxcatsavcmissg factors have not bern
sgiven sufficient weight.
- British Paying Interest
W Wg THIRD The proposals for further
npstponement of payment Of interest
f6s q certain number Of years arise
from the belief that certain countries
cannot physically make these payments
1t the present time without undue
ssraiss or that postponemens of inter-
est would contribute to general eco-
nemie stability and the more rapid re-
covery of these countries in which
every one would benefit. The British
20 not make claims Of such assistance
rom us and are arranging their pay
,aents. This covers some S4,75e, ,00n,00o
of The total debt, and thus clears up
nearly half of the problems at
8nce. The proposition, therefore, mar
rows itealf to debtors on the CONT
Hent. Orr annual payments from the
whole of our Continental debtors
pauld amount TO total of about $780,
600 600 8 year for interest and amorti-
zation The burden of payments falls
with different weight upon each Of the
,ine14en different debtors. Omitting
tha possible 8 per cent that is hopeless
ri collection, il will be found that re-
spective annual payments due TO as
frc.n different countries vary in their
sardcn upon them from z to i2 per
cent % their governmental income.
'Fourth-If there be some of these
countries who should be relieved of the
annual payments for few years in
order 10 promote economic stability,
then there needs be demonstration of
he esicts In respect TO each individual
country that would be convincing to
the American taxpayer and TO Con-
grcss. The taxpayer will naturally
need conviction that such postpone
naent would bring returns TO him and
Tonld xaallv bring such genuine stabil-
s4,.&r.
He would naturally consider that there
ere other things of vastly larger di-
nensions than fhe postponement of
sSo0,000, ,0o0 a year which must march
IN advance before economic prosperity
can be secured to Europe. For eco
Yornie stability requires that there
must be such political and economic re-
adjustment among the states of Europe
as will bring about an atmosphere of
peace in replacement of an atmosphere
of war. There must be Encouragement
Of economic boundaries OF Europe that
will give the hope of economic sur
yiyal of states which can be saved by
no financial operation Of any kind,
There must he reduction Of grna-
rient, not only as guaranty of peace,
but as q coMtribation to the balancing
OF budgets and the cessation of infla-
rion. There must be general intent
to create goodwill and peaceful work
ing together among the nations to their
: own reconstruction, instead OF con-
siant, recurrence OF political crises
%hich SO narrowly escape war and SO
sadly disturb commerce.. All these
-sthiigs would assure the further re-
! covery Of Europe. They would also as
s.sare the ultimate payment Of our loans,
Sgof the burdens on Europe which these
}pans impoae are trivial in comparison
Isesiti wastes and destruction, which
Would be eliminated by economic prog
g ress OF the above forces.
America Always Donor
Fifth Anerca dealt with Europe
2anring the last few years in terms Of
Socialism. We have always given, we
have never received. No one can deny
that we are capable of great sacrifices
saiid Of great generous charity. We
fsaant to take part in Taking a better
world, but It must be clear that saeri-
Sces and charity from America DO net
sthcinselyes bring about cure for those
evils which now gnaw at Europe's eco
spemic life What the American people
swpuld do in the circumstances that the
Iqrces Of real economic stability were
rwt in motion could easily be deter
4Nined when the time comes. Our rec
s6fa to date has been one Of helpful
mess.
s"Current discussions as to the ina
sbSlsty of the countries on the Conti-
ssnent TO meet payments of these debts
phave revoived upon the working of in
@tmcate economic forces.
e s"In arguments advanced that the
ssGans must be cancelled or further post
Epened the claim is seldom made that
sIhe payment OF interest cannot be pro-
- lded out Of taxation or reduction of
Expenditures in the debtor country and
zSSyments made III the local currency of
sshat country Thc trouble is that such
Ierreney must he transformed into
THeods or gold in order to be shipped to
SHE American people. The argument
- gainst payments nearly all bear upon
Mhe difficulties that this transformation
Eapiies. and in them there are large
sSamber Of assumptions.
"lhese assumptions include: That
skhe only method by which payments
se@n be made on international balances
s3k through the shipment of goods or
sGo,d. that these shipments would
necessarily be direct from the debtor
sSeantrg to Us: that such shipments
tnsisht en;barsss our industries and
e.sploymcnt that the capacity of q
sssHen country to pay international OBJ
flgations is dependent upon it's ability
70 produce 2 surplus of goods for ex-
port over and above its necessary inn
i pnrts; that present trade balances
yfshpuld be taken as an indication of
future paying power. 1t appears to
me that the whole Of these asump-
tions as 10 the relation of debt pay