The Bozeman courier. (Bozeman, Mont.) 1919-1954, 1923-05-23
THE LONGEST STEP
IN RECONSTRUCTION

The greatest after-war problem is
the payment of war debts. There can
be no security on national finances,
no stability in commercial and bust
ness affairs, no return to lasting
prosperity SO long as a great public
debt hangs over the people with no
provision for it's reduction or pay
ment. Such conditions compel bur-
densome, if not confiscatory, taxes
and create a general air of uncer-
tainty and unrest.
No nation engaged in the world
war has made such progress in the
solution Of the problem of its war
debts as the United States. Our ma
tional debt was increased $22, 000,-
100000 in round numbers, as a re-
suit of our participation in the world
war. Before the Harding admins
tration could determine upon a per-
manent fiscal policy looking to the
retirement of this great debt, it was
necessary to formulate a definite pro-
gram regarding the repayment of
the $11, 200, 900 GOO we had loaned to
foreign governments.
Those loans were made out of pro-
ceeds from sales of Liberty and Vic
tory bonds purchased by owe TO-
600 600 American citizens. Our gov
eminent is pledged to the redemption
of these bonds when due and the pay
ment of interest on them during their
| 1sfA,o TG 4Aa 1OanC Nondo ohTnOG
are not to be repaid, then al equiv
alent amount of money 70 redeem
outstanding Liberty and Victory
bonds will have to be raised by in
creased taxes, levied upon the Amerl-
can people. Thus, the %refunding of
foreign debts bears a very vital re-
lation not only to the fiscal policy
of government, but to the Amer
lean taxpayers.
At the request of President Hard
ing the Congress created a foreign
debt. funding commission to work
with the executive branch of the gov
eminent in the perfection of a pro-
gram for getting our foreign loans
in a bankable form, with provision To-
|, their gradual reduction and payment
: AS a result of this policy plans have
been perfected for the repayment OF
the war debt of $4,000, 10000 owed
this government by Great Britain
This comprises practically 44O pei
cent of our total foreign var loans
The conclusion of this agreement
is the most important step toward th'
restoration of normal worldwide
economic conditions that has takel
place since the armistice. 1t defln
itely decided that the world was no
to follow the example and Leadership
of soviet Russia, involving the re
. pudiation of national obligations, VIC
lation of all sanctity of contracts an
! honorable agreements among govern
ments.
The willingness and ability of
: nation to meet it's honest debts con
. ~stitutes the measure of it's integrity
! vitality and stability. The best proc
o Of the s~olvency of the British Empir
and the greatest guarantee of 1t
continued commercial standing wa
: it's willingness to enter into an agree
p ment for the payment of its sacre
. national obligations.
5 In making this agreement it pei
. formed the highest service to its ow
5 financial interest, for the moment
was decided up the value of BIRTHS
3 exchange increased. Acknowledged
& ones honest debts and going abou
3 to pay them goes farther to estai
s lish credit than any other act. Tn
& rule applies quite as effectively
s nations as to individuals.
q Two other nations-Finland ar
3 Czeco-Slovakia-have entered into n
z gotiations to refund their war loal
B on virtually the same terms as give
3 the British government. Their pc
8 manency in the family of nations,
8 the stability of their government al
3 the prosperity Of their people. tia
Z has announced its intention of So
= opening negotiations to refund
= debt.
The Harding administration,
& setting our house in order and assis
g ing other nations to do likewise, h
3 made the greatest contribution I
9 ward stability Of worldwide financ
Il and restoration of normal CONNER
8 and industry throughout the glo
& that has been made since the war.
~