Bisbee daily review., 1922-11-12

expansion or planL eALenSlOn. mere would be no point to the banks mak- ing any compromise of the debt unless there were such a general readjust- ment as to make sure that the reduced amount of the debt would ultimately be paid"
 Tt is important to distinguish be- tween repudiation and cancellation Repudiation is the defiant and un- grateful act of a debtor. Cancellation is the generous act of a creditor. It would not be possible for Europe to repudiate these debts without under mining the whole fabric of information al good faith It would, however, be possible for the United States govern ment to reduce, modify, or even cancel these debts without in any way under mining international good faith.
 The fact that the Debt Funding Commission is not empowered to re duce, modify, or cancel any of the debt and that the only conclusive bargains which it could work out with Europe
 
 1-4 per cent and maturity at the end of twenty-five years, has been sup posed by many to limit it's powers so greatly that it can practically accom- plish nothing. This view seems to be erroneous. There is nothing to pre- vent the commission from exploring every possibility, from entertaining every possible proposal. There is noth- ing to prevent it's initiating any pro posal that seems wise to it, in discus sions with it's European confreres There is nothing to prevent the com mission from developing, in co-opera- tion with European commissions, a comprehensive plan, involving the in- terallied debt and all related matters and submitting it with it's recommen- dations to the congress of the United States.
 "The situation again is not unlike that which arises when the officer of a banking house, dealing with an em- barrassed debtor, explores with him the possibilities of the situation, works out plan. and reports the plan to his superiors for approval It would frequently happen that such an offic- CTS preliminary instructions would be to accept no settlement except pay ment in full, but it would well under stood that such instructions would not preclude his discussing proposals made or his advancing tentative pro- posals. {
 There have been no authorized statements as to the policy of the Debt Funding Commission in this mat. ter or as to the willingness of the com to entertain proposals other than those laid down in the act of con gress which involve interest in full at 4 1-4 per cent and maturity at the end of twenty-five years. There is, how | ever, good reason to suppose that the congress- in laying down it's terms of i interest and maturity, was merely re ! lterating in substance the original 1 It would be natural for the principal, i. e., the congress, in it's | instructions to it's agent, i. e., the Debt ] Funding Commission, to authorize it l, to make a settlement without further authority which involved payment in full, but the principal, l. o., the con- | sress, may very well have felt justi- | fled in expecting it's agent to report for further authority in case a differ ent sort of adjustment seemed neces- | sary."
 "The application of the bankers point of view clarifies a god many problems. Thus, it is urged on behalf | of certain of our Allies that it is un-