The united opinion. [volume] (Bradford, Vt.) 1881-1970, 1922-11-17
FOREIGN LOANS ARE DEBTS DUE
TO TAXPAYERS OF UNITED
STATES.

!
tary Hoovers address upon the sub
iect of cancellation of European
debts to our government. Secretary
Hoover takes The unequivocal posi-
ton that these debts should not be
cancelled He states furthermore,
he does not believe any public Off
cial could or should approve of
their cancellation" This is especial
ly significant because Secretary
Hoover is member of the United
States Refunding Commission Great
ed by Congress to handle the entire
subject of our foreign loans,
Secretary Hoover is the second
member of that Commission to come
out fat-footedly against cancella-
ton of scaling down of the debts.
The other member of the commission
to take this position is Congressman
Theodore Burton, of Cleveland, Ohio.
Mr. Burton visited Europe this sum-
mer and made a arching investiga
ton of conditions there. His con-
illusions, stated upon his return to
this country, are practically the same
as those of Secretary Hoover. In
speaking upon the foreign debts owed
this government, Secretary Hoover
makes the following pertinent state
ment:
"These loans are often spoken of as
debts to our government. They are,
i'm fact. debts owing to our taxpayers.
These loans were made at the urgent
request of the borrowers and under
their solemn assurances of repay
ment. The loans were individual to
each nation. They have no relation
to other nations or other debts. The
American taxpayer did not partici
pate in Preparations and acquired no
territory or any other benefits under
the treaty as did our debtors. There
is no question as to the moral or
contractual obligation. The repuda-
tion of these loans would undermine
the whole fabric of international
good faith. | do not believe any pub
lie official, either of the United
States or any other country, could or
should approve their cancellation.
Certainly | do not"
Secretary Hoover does not accept
the argument that Europe is unable
to pay the debts. On the contrary,
he is convinced that with the excep-
ton of about five per cent, these
debts can be repaid within a reason
able time without any undue strain
upon the debtor countries. Secre-
tary Hoover says that the serious
ness of the situation in Europe is be-
ing exaggerated. There is no need
for despair in the future of Europe
if it can maintain peace" says the
Secretary, who is inclined to the
opinion that if European nations are
brought to face the fact they will be
compelled to pay their debts it will
serve to force a reduction of Euro
pean ornaments and act as guaran-
tee Of European peace. Upon this
point, Secretary Hoover says:
''There must be a general intent to
create good will and peaceful work
ing together among the nations (of
Europe) to their own reconstruction
instead of constant recurrence of
political crises which so narrowly es-
cape war and so sadly disturb com
merce. All these things would as
sure the further recovery of Europe.
They would also assure the ultimate
payment of our loans, for the burdens
on Europe which these loans impose
are trivial in comparison with wastes
and destruction which would be
eliminated" by such policy.
Secretary Hoover says if there is
any country which really is unable to
pay it's just debts to the American
government or which, in the interest
of economic stability should be given
extra wide latitude in the manner Of
repaying its loans "then there must
be demonstration of the facts in
re7pect to each individual country
which would be convincing to the
American taxpayer and to Congress"
Continuing, Secretary Hoover makes
the following observation:
America has dealt with Europe
during the past few years in terms
of idealism. We have always given;
we have never received. No one can
sacrifices and of great generous char
ity. We want to take part in max
ing a better world, but it must be
clear that sacrifices and charity from
America do not themselves bring
about a cure for those evils which
now gnaw at Europe's economic life
What the American people would do
in the circumstances that the forces
of real economic stability were put
in motion, could easily be determined
when the time comes. Our record to
date has been one of helpfulness."
In celebrating upon the them,
Secretary Hoover makes the point
that $11 900 100000 debt is not very
large debt as international debts go.
He says:
"Due to increasing population, de
velopment of science, and natural re-
sources, the worlds international
commerce doubles nearly every Is or
20 years, and this debt burden being
a fixed burden will thus be a de-
creasing burden. Large information
al debt is not new phenomenon. 1t
is precisely the same thing in its eff
feet upon exchange and trade whether
the debt is ntergovernmental or a
private debt. Before the war, the
rest of the world owed to Europe
generally probably S30,000,000,0
and this burden was carried without
ripple on the surface of the worlds
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