Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-08-02
WAR DEBT SCHEME
HELD IMPOSSIBLE
Whole Cancellation Plan Hangs
on U. S.. Which Is Not
Interested
GERMAN CRISIS GROWING
BY CLINTON w. GILBERT

ny tOsN w.
stan Correspondent Evening Public Ledger
CoDDrioht, 1927 ov public Ledger CompdrV
Washington, Aug 1.-The State De-
partmCnt indicated todny that the Qucs-
tion Of canceing allied war loans was
not in the hands of the Executive. but
in those Of Congress. II is not even
likely to make recommendation 10
Congress.
Thus the latest move of Europe to
cNtricatc itself from its difficulties ends
like the previous one TO oncn tn" re.
sources of Russia on an impossibility.
France will not reduce rcparations
unless Great Britain cancels its war
loans Great Britain will not cancel
its war loans unless the United States
also cancels its war loans The United
States will not cancel It's war loans.
No one supposcs for an instant that
Congress will regard with favor any
Indebtedness. Indeed. those Shadowy
claims are held out 70 the bonus seek.
crS as their best hope of obtaining ad-
ditional money for their services during
the war.
No Gain TO Be Shown
From very first. wien cancellation
was proposed 10 President Wilson in
Paris. the party in power has been
afraid to present this issue to the public
No direct gain 10 the country can hn
! shown from cancellation and Il Is
feared that the proposal would be highly
unpopular.
Our own attitude does not. however.
differ from that of Great Britain. The
administration there IS afraid to 20 -
III" people with cancellation of debts
on which they could not show direct
gain against a loss. If il could show
that IT, own debt had been reduced by
cancellation by the United States to
an extent about equivalent to tho
amount Cancelled by itself, il could face
III" public. Otherwise il is afraid.
This is practically the position Of
France. Germany is disintegrating
economically. Tie mark reached the
other day 600 TO a dollar. 1t is rapidly
approaching the value of the Russian
! ruble. 1t will decline on the news
! from England. The collapse Of Ger
many involves dangers and response
I bilties for France. The French Cow
! ,rnmcnt is afraid 10 go TO its peop"
with proposal to cut reparations, the
only thing that can sNve Germany. un-
in the reduction of Frances obligations
TO Great Britain.
We Have No Way Out
Thus the question comes around 70
u.s. There is no way IN which we can
show any equivalent, for no one can
cancel any debt to US.
And there the hope Of pulling Europe
out of the mire stops.
Only If the catastrophe which seems
inevitable in Europe directly and un.
mistakably affects US and destroys our
prosperity, can the issue OF cancela :
ton be presented TO the American peo-
pie.
The mistake is made OF treating tLt,
as a financial question.
A Political Question
As I have just shown, Il Is every
where political question. Tie J. p
Morgan mission 10 Europe regarding
an international loan to Germany failed
because it attempted 10 treat the re.
habilitation of Germany as q purely
financial question. Il ran smack into
the political side Of the issue anl
stopped dead.
The British note has the merit OF
presenting it sluarely in its true ligh,
as a political question. But once more
dead stop is reached. No politician in
any country has the courage to 70 t,
his own people with It. He passes Tho
responsibility over TO his neighbor unit
it finally reaches the United States
where the understanding Of Europe
plight is least and where the concern
over it seems for the present negligible
The best hop" Of solution seemed 20
be England whose practical realism
might have been expected 70 see the
folly Of looking for help where indIf-
ference was necessarily greatest. BU,
Lloyd George has again failed, az he
failed at Paris and as he failed a,