, 1923-02-07


OF the war" In these observations
I most heartily approve. The call of
the world today is for integrity OF
the sanctity OF covenants.
the validity of contracts. Here Is the
first clearing Of the war clouded skies
in a debt.burdened world, and the
sincere commitment Of one great
nation to validate its financial pledges
and discharge Its obligations in the
highest sense of financial honor.
PART FOUR.
There is no purpose to report that
your commission has driven a hard
bargain with Great Britain, or I o do
a less seemingly thing in proclniming
n rare generosity in settlement. Amid
widespread clamor for the cancel
lation of world war debts. as a fancied
but fallacious contribution toward
peace-a clamor not limited to the
lands of debtor nations but insistent
among many of own people-the
British commission came to make
acknowledgement of the debt. to put
fresh stamp of approval upon its
validity and agree upon terms for Its
repayment.
1t was manifest from the beginning
that Great Britain could not under.
take any program of payment which
would conform to the limitations OF
time and interest rates which the
commission had been authorized TO
grant. But hero was a great nation
acknowledging Its obligations and
seeking terms in which II might re
pay. So your commission proceeded
to negotiate in a business way for a
fair and just settlement. Such a
settlement had to take into considera.
ton the approximately normal inter
est rates payable, as the commission
suggests, by strong governments
over q long term of years." with 4
temporary interest rate and suitable
options adjusted to the tremendous
problems of readJusment and recuper
alton. Your commission went SO far
as it believed the American sense OF
fair play would Justify. Even then
the British debt commission did not
EEL justified by its instructions TO
accept the proposal. Only after sub
mission to the British cabinet was
the proposal of your commission &C
copied, and, I bring it to you, with the
earnest recommendation that it be
given so far as legislative procedure
will admit, a cordial and prompt
approval.
PART FIVE
A transaction Of such vast import
ance naturally has attracted wide
spread attention and much of com
~mendation. It is a very gratifying
thing to note the press and public
have uttered substantially unanimous
approval. 1t means vastly NOR thar
the mere funding and the ultimate
discharge of the largest international
loan ever contracted. 1t is a recon
mitment of the English speaking
world to the validity OF contract; 1
is in effect a plight against war ant
war expenditures. and n rigid ad
herence to that production and re
trenchment which enhaces stabilit!
precisely as it discharges obligations
1t cannot-b be unseemly to say It, ant
II is too important to DO omitted, til,
failure of the British undertaking
would have spread political and econ
omic encouragement throughout th'
world and general reputation woulC
have likely followed in its wake Blu
here is kept faith-willingly kept le'
1t be recorded-and n covenant o
peace no less effective than It WoulC
be II Joint British and American oppo
sition to war were expressly agreed
upon. 1t is n covenant of peace and
Incorporation, of respect and coOpera
ton. 1t is a new element OF financla
and economic sterilization, when the
world is sadly needing a reminder o.
the ways of peace. 1t is an example
Of encouragement md inspiration
when the world is staggering in dis
couragement and bowed with the sor
rows of war that were and fears oil
wars which humanity is praying may
be avoided.
PART SIX
Ordinarily I should be reluctant tc
add this question to a congressional
program which Is already crowded. ir
view of the short period remaining Of
your session. But 1t is of such out
standing Importance to use and to the
world that I should be remiss II I did
not invite your sanction even amid
crowded calendars and pending prob
lens of great import. And I hope
you will be glad to approve. II the
debtor nation could decide to assume
the great obligation in two cabinet
sessions, in the face of enormous fin
mcial and economic difficulties, sur
Iy the deciding authority of the credit
OF nation will be ready 10 approve ir
a, spirit appropriate to the great tran
saction and with a promptness which
will convey BETTING appreciation.
I am not unmindful of the dispose
ton to pledge the application of antic
h settlement. 1t is not necessary &c
remind the congress that the use oil
monies secured in tho repayment o.
war loans has been pledged by the