The Birmingham age-herald., 1923-01-15
 REFUNDING BRITAIN'S DEBT


 the war loans to Great Britain, France, etc., specifics that the principal may not be reduc- ed, thatthe interest rate shall be not less than four and fourth per cent, and that the debt must be paid by June Is, 1947. President Harding ten days ago, in view of the coming to this country of the British debt commis- sion, asked congress to unite his hands, and allow him to negotiate with the British com mission as should seem best for the inter ests of all concerned. Congress has yet to take action, and as appears, there is some politics in the affair and congressman are wary in all that has politics in it.
 It is evident that unless congress lifts the restriction, there can be no conclusion, and the commission will have wasted it's time in coming to this country. No negotiation can begin if one side says at the start that "These are my terms, they are the same as originally stated, and you can take them or leave them" The British commission comes with hope that the American attitude :a not like that of the Medes and Persans, but that it can change. The American presi- den sympathizes with this hope, and thinks it is natural for the commission to indulge in it. for he asks congress to do what the com mission hopes will be done, namely, to relax the conditions and give chance for negotia- tion, and for agreement that will be favor able to the nation they represent.
 Great Britain's argument, as stated by the chancellor of the exchequer, MT. Stanley Baldwin, is in the main that Great Britain intends to pay principal and interest, but of ,to that the interest be frightened and that q longer dime for finsl payment be accorded Her position as debtor is peculiar, says the chancellor, in that the allied countries that she helped in the war with large loans are unable to pay, and therefore the money with which she would pay the United States is frozen, and for Great Britain to meet the terms of the debt without change will be at such sacrifices in the way of taxes imposed upon her people as will set not only Great Britain but the world back in it's progress. The British people are suffering from un- employment that is bearing heavily upon them; and there is no compensatory condi- tion, such as is supposed to exist by reason of territory gained by the war. The man. dates have involved the country in vast un- productive expenditures and give to Great Britain no economic privileges which are not open equally to other nations. In short, Great Britain comes as nation needing help from a friend, in order that she may be able to comply honorably with the obl- gations resting upon her.
 It appears good business proposition to enable Great Britain to uphold her credit and at the same time to lift part of the burden of taxation under which her people are struggling; for Great Britain is an ex cellent customer of ours; she buys most of her food from us, which our farmers supply If she goes bankrupt because of the failure of her people to find work, and because of their poverty, then she cannot buy of us and our food and fibre producers will suffer in turn.
 Congress, it is said, fears that our far mers will rise in wrath if consent is given to a reduction of the interest rate to Great Britain, when they, the farmers, have to pay six, seven and eight per cent. for money; but it is possible that this expression does the farmer an injustice. The American far mers are intelligent and generally well in- lOTHcQ, anu tucy hiioW CHOuSh Ol tNUlOHilC law to recognize that live and let live is true rule of conduct, and the best for them as well as for other people They know that good policy will be to encourage the British people and keep them as capable buyers of American products. If to do this a concession has to be made, that will be less than they themselves can get, they will understand that it is done in great emer- gency, and for people who helped them in the fight for the protection of democratic institutions. It is not time for demanding the pound of flesh; Great Britain is our friend; the American people want to see her prosper.
 Moreover, there is another phase of the subject that should incline our people to liberal action in regard to the debt. All the dollars lent to Great Britain were spent in the United States, the most for cotton. wheat, food products and munitions The dollars did not actually leave this country, but were paid over to American producers and manufacturers. We as people were not made poorer by the transfer of our wealth, but were really made the richer We got a profit on. what we sold. Now, Great Britain does not urge this as an ex- cuse for lessening the debt terms, but we can use it in justifying our liberality toward a distressed and honest debtor, who would gladly pay on the nail, but confesses that the gold with which to do so is not in her possession. Neither can she pay in goods, because, even if we, contrary to our tariff ideas, should welcome such payment, it would be mistake, as it would upset the cf xaao1alo for