New-York tribune., 1922-09-14
Allies Can Pay
HCerrllany(,all,
Barllcll Asserts
In Letter to Borah He Says
American People VIII Be
Hard 10 Convince They
Ought to Cancel Debts
Disagrees With Balfour
Cites U. S. Refusal 10 Ask
Indesnraities So Allies Can
GetAll Possible From Foes
sroa. Ths Trsesns,s wasass0son Barsaa

Hrcns The Trfauae's Washington Eayeas
WASHINGTON. Sept. BIN LETT
Ger to Senator Borah, which was put
into the record Of the Senate to-day.
Bernard n. Baruch, expressing his
views on the Balfour note suggesting
an all-round cancellation OF the inter
Allied debt, declares IL would be diff
fcult to- persuade the American peo-
pie that,tif Germany can pay $4,000, :
100000. the Allies cannot pay the
amount due the United States.
'"The Balfour note" he saye, listed
among Eagiand's claims which she was
willing to wJdnce or cancel. the sum
Of 81 SOC, o,00oroUo for German repara-
tions, resting on pension and separa-
tion allowance" America, he adds,
put in no suca claim.
Mr.. Baruch says the American pco-
pie decided that the war was not
theirs until they entered it, and the
international community of purpose
and interest must be viewed as dating
from the time Of that entrance. 1t
then must be considered what por-
tion of our advances was truly for
common objectives.'
Mr.. Baruch holds that it is useless
to consider either the German repara-
tion or the readjustment of the inter
Allied debts by themselves, because
they aresf"bat two symptoms of dis
ease that lies deeper"
Mr.. Baruch's letter said:
Pursuant to our conversation Of the
other day, as promised, / am putting
on paper some of my views concern
ing the financial aspects of the So
called Balfour note.
THAT note is the presentation of
the opinion of certain school in Eng
land that contends that the German
reparation cannot be reduced unless
all inter-Allied indebtedness is can
celed or reduced, and that the inter
Allied indebtedness should be can
celed on the ground that the war was
common cause. and that each country
gave whas it could in men and treas
ure.
THE Balfour note listed among the
claims tha1 England had, and which it
would reduce or cancel if America
Cancelled the Indebtedness of the Allies
to her. . claim of 21, 300 900 900 for
German reparation.
IF the purpose of the note was to
secure Americas coming in on the
same basis as England. It might have
been well to have eliminated entirely
England's claims against Germany.
which are based almost entirely upon
pensions and separation allowances.
because America has put in no such
claim.
THE moving cause. as understand
", for our not demanding a share of
the German reparation was in order to
permit the devastated countries
france, Belgium, Italy and others--to
haVe wAaS the Germans could pay.
so Tar as the Allied debts are CON
eerhed. there are several ways of look.
ing at them.
inere are those who say they should
be Cancelled because they cannot he
paid, and there are those who, like Mr.
balfour say they should be cancelled
because they were incurred in com
mon cause.
Some Payment Possible
"The first of these apparently CON
sider the matter from a purely com
mercial standpoint What do fhe ad-
yocates of cancellation mean when
they say that the Allies cannot pavq
Do they mean that these countries
cannot pay all, or that they cannot
pay part? Surely all Of the great
countries which are now our debtors
can pay something if given time. And
! am sure that countries like England
II we insist, can and will pay all, no
matter what the cost may be. From a
business standpoint it is going to be
exceedingly difficult to convince the
American people, who after all are
the final larbiters in this matter. that
If Germany can pay $4,000 900 900,
which all thoughtful people. think she
can pay II given time and opportunity,
the Allies cannot pay the amounts due
us. Money is not the only method Of
payment. It is through the exchange
of things that nations will pay one
another as most individuals pay one
another. But the nations of the world
cannot make things with which to pay
unless they get down to work.
snow Shs to the Balfour point of
view:
"Whataver may be the opinions of
others, including myself. on the sub