Evening star., 1923-11-24

France or any other civilized and
solvent nation fs unthinkable.
Russia owes US Inclusive OF inter-
cst) s237.242,05427, and the soviet
government shows no present intent
either to pay current interest or to
fund the debt In gold bonds, but In
our Treasury lie the promissory notes,
| and there they will probably stand
as bar to recognition of any Rus
sian government which refuses to
take them over and fund them.
4
The history OF France and her
supreme rank among honorable ma
tions makes the Idea OF her ever con-
ternplating repudiation grotesque. All
| that President Poincare's statement
| means is to express Frances present
inability to begin her ultimate repay
ments.
But why not fund the demand notes
into bonds? Because the bonds would
become payable in annual INSTALL
yet supporting military defense) is
not yet able to meet such payments.
being dependent, as she represents,
on her irregular collections from
Germany.
LIE Temps, which is sometimes con-
sidered an official organ of the ad-
ministration, protests against present
| funding, on the ground of demoraliZed
exchange, but as both the notes and
bonds are based on gold, that argu-
ment is not clear. 1t also objects on
| the erroneous ground that, based on
our settlement with England. she
would be required 70 pay the bonds
| In twenty-five years, while the Ger
man reparations will require seventy
| five years to collect; hence, France
| would have to finance two-thirds OF
| German claims. Cur settlement with
| England covers sixty-two years.
There are certain financial interests
| and other influences pressing for can
collation. of all claims by the United
| States. Their arguments for cancella-
ton are mutually contradictory.
There is little If any of such senti-
ment in official circles. The Debt-re-
funding Commission is forbidden by
law either to cancel or to trade the
| obligations of one nation for those of
| any other.
others press for drastic collection
! on the ground that IL the nations are
| Obliged to pay us, the warning ma
I tions would have no funds for con-
| tinuing their wars. But IL all are
| thus impoverished. say those of more
| moderate views. will not the Einstein
| theory of relativity leave them equal
ly able to fight? Desperate and and
and It's required sustenance.
Assistant Secretary of the Treas
| ury Eliot Wadsworth twho is also
| secretary of the Debt-refunding
| Commission) advances the argument
against cancellation on the ground
! that we may want 10 borrow in the
| future from Europe, and then the
! question would be sure TO arise as to
| whether we might not then point
| to Our precedent and demand like
| cancellation of what we would then
owe. Cancellation would thereby in
| jure our own credit, II we ever
again needed credit. The Debt-refund-
| ing Commission consists Of Secretary
| OF the Treasury Mellon, Secretary of
| Commerce Hoover, Senator Smoot and
| Representative Burton.
| There is. IL would seem, no dispo-
| sition TO press France or any other
| debtor. but it is likely. that within
! the next few months efforts Will be
| made to refund all the notes on
/ terms mutually satisfactory. Hith-
| erto there has been no embarrass-
nent in any country due to these
| debts: no country which has not
funded the Cebt carries it in it's
! budget The United States has not
! ready at all times to show the same
| nsideration of the debtors condi-
| ton as broad -gauged banker would
! show an individual. recognizing that
| more is saved, even from bad debt.
| by leniency than by overharshness, yet
! never losing sight OF final settlement.
; Copyright. 1923 hy Paul v. 'Oollins.l