The Wilson times. [volume] (Wilson, N.C.) 1896-19??, 1922-02-24
COMPLICATED SITUATION
America Has Appointed a
Funding Commission But
Italy and France Say They
Cannot Pay Because Of High
Tariffs England Refuses to
Cancel French Debt.
(By David Lawrence.)
Copyright 1922 by The Daily

/
Washington, Feb. 22.-World fin
ance is threatening to develop
vicious circle" involving not merel!
! the payment of American Libert!
Bonds but the heighth Of the tariff
wall being constructed by the Ameri
can Congress.
France says through former Min
lister Loucheur that she will not be
able to pay America the war debt be-
cause Of the high customs duties i'm.
posed against her.
Italy through Ambassador Riccic
who is a famous economist as we'll as
a diplomat says the tariff wall will
prevent Italy from paying what she
owes the United States.
Great Britain says she will not can
Gel any of the debt owed her by
France unless the United States can
cells an equivalent amount of British
debt.
France says she cannot pay Great
Britain until money is forthcoming
from the German indemnity.
America has just appointed a fund
ing commission and has yet to speak
her policy. But certain fundamentals
can be taken for granted. One is that
the new commission composed Of
Secretary Hughes, Secretary Hoover,
Secretary Mellon, Senator Smoot of
Utah and Representative Burton Of
Ohio will not cancel any Of the Euro
pean debt. No such power is vested in
the commission. The most that can
be done for Europe is to spread the
payment of interest and principal
over period of years and here too
Congress has imposed limit Of
twenty five years. This may have to
be extended but that's subject for
bargaining across the table.
In fact, the appointment of the
American funding commission has
been the signal for pointed express
sions from both France and Italy.
The cry that neither can pay unless
the tariff wall is removed is regarded
here as having some basis of plausi-
bility from the viewpoint of sound
economics but the belief prevails that
Europe will look around for many an
excuse to postpone or repudiate pay
ment until finally compelled to meet
the question directly in the official
negotiations.
The action of Great Britain in an
nouncing that she fully intends to
pay interest and principal and that
she had already set aside approxi-
mately $11O, 100000 to pay 6 months
interest on her Indebtedness to Amer
lea has produced profound impress
sion here and is another evidence of
the betterment of Anglo-American
relations.
There are of course three ways by
which Europe can pay her debts to
gold, in goods and in
service such as freight carrying. Gold
can be transferred only If America
buys of Europe. Should the American
people indulge in the purchase Of Sc
curities Of foreign enterprises, this
would tend to help the situation but
Americans have been slow in the past
to invest heavily in European busi-
ness.
The export of goods which would
be payment for debts to America
would help Europe but the tariff laws
under consideration in Congress will
tend to reduce the amount that Eu-
rope can sell here. II It ever comes to
q question Of permitting foreign man
Hesitation to flood American mar
kets and hurt American industries,
the tendency would be to forego pay
ment Of foreign debt and keep Amer
lean industries going.
But there 10 a mean between two
extremes-a line below which Amer
Continued on Page Disht.)