The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-11-01
REEDSAVSG.O.P.
WILL COLLECT
DEBTS
Pennsylvania Senator Outlines
Republican Policy on War
Obligations
CONTINUED from First Page.D

OOutlAuSO AEOIH rlKSb FABSJ
foreign governments. In which the
interest Is fixed at about per
cent.
This Administration desired TO-
secure q payment Of this great sum
OF money, and the Congress- passed
q law authorizing the President to
appoint q commission for nsgotia-
ton, which was done. Great Bri-
tain at once responded and settle.
ment was effected, which amounted
with interest 70 about $l.T60, 200 900.
Under this settlement that country
agreed TO pay per cent for O.
short period, and then 3h per cent,
sending us about $3.50 ,00O. 900 q year
for q period of sixty.twO. years,
which would amount to about $13,-
900 900, 900. France has discussed
payment but has arrived at no set
Element. One or two OF the smail
countries have agreed 10 pay on the
basis Of the British settlement.
u. s. Policy Plain.
This is what has been done. Now
the American policy is plain. IL
IL opposed to the cancellation Of
these debts, and desired to expedite
their collection. Tho money was
given and received as a loan. We
issued our bonds TO secure Il. These
bonds must be paid.
IL the foreign governments do
not meet their obligation TO pay
them, they must be paid by the tax.
payers Of the United States. Our.
people loaned this money on the
understanding that foreign govern
ments were to repay it. Il would
be a breach Of good faith not to
have that done. OF course, there is
moral obligation to make this pay.
ment, which no government can
remit. Besides this, II these debts
are not paid, It would ne impossible
in the future for governments to
borrow money IN time Of war.
Effect on Peace.
Moreover, our Government ought
to require payment in the interest
Of the peace Of the world. II Eu-
ropean powers are permitted TO
wage war on money borrowed in
America, not to be repaid. It would
be so much encouragement to take
up arms because those who resort
to that practice would no: have to
pay the bill.
This whole matter ID covered by
law Of Congress. Neither the
State Department nor the President
has any authority whatever, either
to cancel & cent or to agree to can
Gel . cent Of this Indebtedness.
u. 8. Not Oppressive.
On the other hand. our country
does not wish to appear In the role
Of an oppressive creditor. II has
desired to assist In the rehabiltta-
ton Of Europe. leaving that much
wasted country in the possession Of
itS much needed capital for repro
ductive purposes. 1t has even gone
beyond this. Private sources In this
country have supplied a large
amount Of money both to private
enterprise and to the governments
Of Europe. Our Government waived
priority In large claims held against
Austria, 80 that security could be
found for q loan to rehabilitate the
money system OF that country.
Private sources also have loaned
money to the French government
and recently to the German gov.
eminent. But these loans are
made with no assurance that they
will be supported by American
arms. It IL not the American
policy to collect debts OF this kind
by force, and such loans are made
without any commitments on the
part Of this Government.
Due From Germany.
A debt is due us from Germany
on account Of the Army Of occupa-
ton and on account Of injuries
inflicted on our citizens while that
country was at war. These last
are private claims and are in the
hands Of commission for adjust
ment. The debt for occupation is
being paid.
This il the policy our Govern
ment has pursued. It wants
foreign governments to nav IL
what is due. It does not wish
to Cypress them. It wants foreign
countries financed In such a way
that they can engage in productive
enterprise. But We have no money
to furnish for the prosecution OF
military purposes. We are doing
what we can to restore Europe, IN
order that 1t may be able to meet
It's obligations, settle its repara-
tons, and repay our Government