Evening star., 1923-02-12
CAPITAL KEYNOTES
BY PAUL y. COLLINS.

The ready acceptance by Congress
OF the terms Of refunding Of the
British war loan is one Of the great
est manifestations of nom partisan
faith In the patriotism and wisdom
Of the negotiators OF the settlement
that has ever been shown in our
government. The vote of acceptance
was not based on congressional
knowledge OF why America should
40 readily agree to take loss of n
Per cent a year on the enormous sum
involved; 1t was so voted because
Congress was assured that it was the
best settlement possible under all
the circumstances. What were those
circumstances, only the few who were
in the inner councils of the negotia-
the faintest inkling.
X y X i
On the face of the agreement, we
loaned to England-a solvent debtor
$4,604.12S.0s5.75-for which England
agreed to pay AZ per cent interest.
In order to raise the money to lend
to England, America thereupon bor-
rowed from it's citizens the amount
and agreed to pay on its Liberty
bonds, given for the funds. the rate
Of ~, which would exactly offset
what England agreed to pay our
government. Now comes England
With new terms. and we accept the
new terms whereby she pays only
8 per cent during the first ten years
and 3 "A per cent the rest of the period
and she will wipe out the debt in
sixty-two years.
If she had continued to pay AZ
per cent annually and had asked US
to apply ] per cent of that AZ on
the principal and the rest on interest
at 3A. the whole debt would have
been amortized in about thirty-sever
years. So. on the face of things, IL
looks as IL America had played the
ciers.
"On the face" does not tell the
whole story. in great fnternational
diplomacy. The terms we give Eng
land will undoubtedly be, given ths
other debtor nations, and SO affect
the entire $4,000. 100000 due US. We
| continue to pay Az per cent interest
and lend at per cent-a loss of IA
annually on, $4,000. 100000 amount
ing to $f5,000,000 a year-modified by
whatever payments may be made or
the principal.
"
Our debtors will not confess insolv-
ency; why should they not be held to
pay the full rate and the full face OF
their agreements? The public is as
sured that this is the best settlement
possible. Why?
President Harding told Congress in
a significant tone:
at is a. pledge against war and war
expenditures. and a rigid adherence
to that production and retrenchmen'
which enhances stability. precisely al
| it discharges obligations. The
failure Of the British undertaking
would have spread political and eco.
nomic discourag cement throughout
the world. and general repudiatio or
would likely have followed in its
wake"
Was that the threat-the prophecy
the alternative? II so, the price pait
by America for world peace is not toe
| high, but let the whole world know
| that we have paid that price for tina
end. Away with further slander o.
American character, saying that W.
are selfish dollar worshipers, withou
world ideals.
Then praise the Lord most high.
Who bsde us choose that the nesh shall die,
And not the living soul;
The crisis is too Overwhelmingly
great to be touched by partisan poll.
tics 1t may we'll prove the turning
point in world diplomacy and the
dawn Of world understanding and
peace.
Representative Pou, democrat, oi
North Carolina says:
"The problem Of adjusting this
great debt of Great Britain to the
| United States is SO pregnant will
vital results that no political ad
| vantage should be even thought of
| The adjustment of this debt will b,
a start in the accomplishment o