Evening star., 1922-09-14
links INDEMNITY
! WITH ALLIED DEBT
Baruch Says Britain Must
Renounce Reparations it
U. S. Cancels Loans.

Intercancellation of war debts by the
allies and the United States. as sug-
gested by the Earl OF Balfour. the
British foreign minister. in his recent
note, could in the opinion of b. M.
Baruch be considered by America only
in the event that Great Britain should
renounce, as did this country. all re-
paration claims against Germany.
Mr.. Baruch. who was head of the
War Industries Board and who acteo
as economic adviser to the American
commission to the Versailles peace con-
ference. set forth this view. together
with other observations on the war
debt question in letter received amt
read by Senator Borah. republican.
Idaho. yesterday in the Senate.
The INSTRUMENTATION suggestion OF
the Balfour note represented only one
school of European thought, Mr. Baruch
said. adding that he was convinced all
of the nations to whom the United
States loaned money could pay and
would pay if given sufficient time and
opportunity. Germany, also he as
serted. could meet the reparation de-
mands OF the allies if accorded the
same treatment. Readjustment of the
interallied debts and the German re-
parations question. he wrote, must be
treated together and any decision must
be. so made that the peoples affected
would "look forward with hope and
not backward with hate.
Common Advantage Denied.
MIR. Baruch dealt at length with sug
gestions put forward by some British
spokesmen that the United States in
considering The British debt Should
take into consideration that the money
loaned to Britain was used largely
to buy supplies in the United States
Surely money that was spent for
=, ~
shipping. which became permanent
part of the mercantile fleet of Eng
land, or money that was used for
the purchase of such material as
went for commercial purposes. or to
btlSter exchange or to pay for loans
or materials obtained previously to
our entering into the war. if there
were such, can by no conceivable
reason he considered a contribution
to common cause, and. therefore,
should not be cancelled" he continued
"The same applies to instances where
food was bought for England's
civilian population, not for her SOL
diers, and was paid for by that popu-
lation. 1t must be remembered that
the English government did not give
but sold to its people the food bought
in this country.
"On the other hand, in practically
every instance where purchases We're
made in England by us after we en-
cash and not by means Of a loan by
England to America. Again, America
;paid England for ferrying our SOL
sdfhfs to Europe.
r Calling attention to the .impos-
isfbnity of debt payment without a
genuine revival of European foreign
trade" the Federal Reserve Board
contributed yesterday to the general
ttkicussion of foreign debts. with an
analysis of the situation from the
ecfnomic standpoint
The entire question of repara-
tions and interallied debts involves
the foreign exchanges. international
trade and security payments" the
board said. consideration of them
during recent months reflects clearly
the disturbing effects OF the uncer-
tainty which has prevailed, and af-
fords little announcement of i'm
provement until some definite basis
or agreement between the nations is
reached"