The Birmingham age-herald., 1924-02-26
DEBT CANCELLATION UNsOUND

DEBT CANCELLATION UNSOUND
 Those who give real thought to the ques- tion of foreign debts cannot but reject with some impatience the recurring suggestion that the United States is in some way morally or economically bound to cancel such indebt- edness. Not only would that be to transfer from other peoples to the people of the United States tax burden of grave moment, but it would be regrettable acknowledgement that we ought to pay for wars that other nations have brought on themselves and thrust upon us. It was in the beginning no quarrel of allied nations were unable to check the en- emy and prevent its becoming menace to all the world, including ourselves. Further more, it has been often said that no nation can afford to default OH the money which we so freely lavished when that nation was in such defalcation would have an unfavorable reaction.
 Bearing out that opinion is the technical opinion of such foremost figure in the in- ternational world of finance as Mir. F. C.. Goodenough, chairman of the directors of Barclays Bank, Limited, of London, Eng land At the annual meeting of the share holders of this influential institution, in speaking of the American debt, Mir. Good enough declared: "One of the principal events in the year has been the funding of this debt. No one who has visited America can fail to realize the gain to British credit and British prestige owing to that settle ment, or the loss that would have been in- cured by both if our liability had been ques- toned or had been met in any other way There may be differences of opinion in re- gard to the actual terms, but in my opinion, whatever modification there might have been, if any were possible, it could not have been very great. Moreover, the adherence by Great Britain to the principle of the honorable full fillment of contracts in which lies 'the great portance."
 Such expression as the above is evidence of recognition of the fundamentals underlying our civilization and social structure. The British might have evaded and delayed the assumption of their responsibilities incurred during the war, but they could neither have evaded nor delayed the, disastrous conse- quences to themselves that would have re- suited from such a policy, not through any retaliatory measures, but through the inevit- able and immutable working of the laws of economies. There can be no acceptance of 1...l- Al .I~lA Il. Il it extremely difficult to pay should be for given. If that principle were permitted to show itself, then any nation might find any debt extremely hard to pay, and thus the very foundations of international confidence and international credit would be, destroyed All the more solemn are those financial ob- ligations which are incurred when, without asking guarantees nor making terms, one na- tion comes willingly, promptly and literally to the financial support of, another in deep peril of it's existence. Great Britain has set a good example and has already reaped a profit from it. There is no fear that the better judgment of the other nations will pre- vail and set them on a similar path of honor. able redemption of indebtedness, when their internal affairs. give them breathing spell The sooner this happens the better for all ma tions concerned and for world trade.