The Washington herald., 1922-09-28

hkACIlCALLG everyone has more or less
i general idea that America loaned vast sums
OF money TO the allies during the war; and that,
in this way, the various nations Of Europe placed
themselves under obligations to the United States.
which they are apparently likely to find extremely
hard to fquidate. Comparatively few, however
have clear idea of the differences in kind be-
tween the various loans which were thus made
says the Christian Science Monitor. In letter
which Bernard NJ Baruch wrote recently to Sena-
tor Borah, however, he called attention to these
differences as being of great importance. and init
mated that, in any final settlement which might
be reached, the question of the purposes for which
America loaned her money bound to come up
for consideration.
In this connection It is interesting to note that
Oscar T. Crosby former Assistant Secretary of the
Treasury in discussion of Americas loans at the
recent Institute of Politics in Williamstown. made
differentiation somewhat as follows: First, he
said. there were loans which made for the
purchase in the United States of munitions used
by the allies; then, loans made for the pur-
chase in America of materials and other sup
plies which were resold in Europe, the money be-
ing kept in the United States, and thirdly, loans
were made for the purchase of supplies in Argen-
tina and other countries, the loans being made from
America because of the superior credit there and
to prevent demoralzation of the exchange.
1t is not hard to that different business
values are attached to these various loans and
each class would require its special and ex-
pert handling. Now America is owed approxi-
mate'y SII,5oo,ooo,ooo by the various European
countries, sum enormous that the receipt Of
the yearly interest alone, matter in what form
It was sent, would exercise profound influence
on the export and import trade of the country.
The question therefore arises, How much of this
money be received by America without actually
doing more harm than good? Or, putting it some
what differently, How much be received with
out producing greater amount of unemployment
than there is at present? Surely an exceedingly
important issue
Consider for moment this matter of the re-
ceipt OF the interest, regardless of the principals
1t would total about ssooooo,ooo year. Such
can. of course, only be paid either in gold or
in goods The European countries have prac-
tically gold. The payment in goods would.
therefore, be virtual necessity. What would be
the result? In view of the fact that almost all
the nations the United States money, it would
be necessary to cut the counrys exports till they
were surpassed by her imports by practically the
amount under consideration in order to receive
the equivalent of the interest. The ques-
tions would also arise, How much could be alb
sorbed in goods without excessive injury to the
country and how should the tariff be adjusted to
meet this situation?
There is strong sentiment in many quarters
for second Washington conference this fall If
such conference meets, the question of the allied
debts is bound to come up of the most i'm
portant problems upon which a decision must be
reached. The full facts concerning the situation
must be understood. America will be found willing
to do her duty, when the time arrives as she was
when Secretary Hughes made his monumental pro-
posals last year But any adjustment of debts
must be made from the standpoint of obtaining
! ,-J
given in way that proper striking off Of
debts will make for peace, America will gladly do
her share, and it will be extremely important
share, but it is only be expected that there will
have to be given the that any such ad-
justment must be practically the equivalent of an
actual payment-that payment to be payment
| toward permanent peace