Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-01-20
KEEP THE BONUS OUT OF
INTERNATIONAL POLITICS
II Would Be a Tactical Error to Tie II
Up with the RefundIns Of the
Foreiun Loans

TT A corporation had lent $4,000 900 900
i to another corporation In an acute emer'
gency and had received merely letter
acknowledging the indebtedness, the frat
corporation would take advantage Of the
earliest opportunity to have the borrower
give notes or issue bonds TO secure the DEBT.
The United States is In the position OF
the lending corporation at the present time'
1t advanced to half dozen European coun-
tries $4,000, ,00O, 900 or thereabouts with
which to prosecute the war. 1t has nothing
to show for the loan but the acknowledgment
Of the Indebtedness signed by the proper
officials Of the different countries. Great
Britain is the only country which has paid
any interest, and it has not paid the whole
amount due The other countries are In no
financial position to meet the interest, and
they do not know when they will be.
Secretary Mellon asked Congress in the
spring for authority to make arrangements
with the debtor nations for funding the
loans on such terms as seemed most ndvan-
tageous to all concerned. He wished to
change the non. negotiable I. o. U.'s of the
foreign Governments into interest bearing
bonds, whiCL could be held in the Treasury
as assets or sold in the open market to
raise money with which TO pay the bonds
that had been issued to borrow the money
from the American people which had been
lent to Europe.
Since then Congress has been amending
and renmending the original bill until it is
IN such shape that those who wish to
prevent grave international misunder-
standing are beginning to think that it would
be better to do nothing than to pass the
measure In its present shape.
It is not a mere matter Of international
finance that is involved. Friendly relations
between the United States and Europe are
at stake. We cannot afford, however the
Oretically justifiable it may seem. to direct
the Secretary of the Treasury to make any
demands on Europe for the money due US
that Europe cannot meet. Our own pros
pertty is dependent on the industrial re-
covery Of Europe. The nations there are
struggling under burden of taxation to
meet the absolutely necessary expenses of
government.
The part of wisdom for the United States
is to pursue such n policy as will conserve
the, resources of its European debtors, in
the hope that they may ultimately be In a
condition TO pay what they owe. We can
not, safely TO ourselves, press our claims
at this time.
If all this is true, then the attempt nov
making In Congress to tie up the soldier
bonus payments with the foreign debt re-
funding scheme seems not completely wise.
AS soon as II was arranged TO pay the
bonuses from the interest or principal of
the loans. the soldiers would be likely to
demand that steps be taken TO collect what
was due regardless Of the consequences. and
we should have trouble on our hands at
once.
The settlement of the debt should be kept
as far as possible from the domain Of Ameri.
can politics, so that the broader interna-
tional considerations may have their due
weight. This is aside from the merits of
the bonus proposition. That matter should
be met independently and should not be tied
up with International politics. If Congress
decides to pay the bonus it should find the
money here at home, where It is, rather
than apportioning to the soldiers a part of
q foreign debt the payment Of which ia
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