The Birmingham age-herald., 1924-08-09
NExT-A DEBT FARLEY

Now that the separations questions ap- pear to- be nearing final and satisfac- tory settlement, France is expressing a desire for an extension conference on the subject of inter-allied debts. It may be we'll to grant Frances desire for this discussion, inasmuch as she gracefully yielded to the majority opinion that such discussion should be separate from that of separations. It is inconceivable that the question of debts should be a sub ject taboo in international councils. On the contrary, such debts will remain as residual cause of international unease after reparations are under way, unless there are full, frank and definite plans for their retirement. The American stip- ulation is solely that the question of debts shall be kept distinct from that of separations.
 It is understood that France advocates mutual cancellation of all such debts, holding that, inasmuch as all the powers are debtors in part and creditors in part, cancellation would be a shortcut to sat- isfaction of all outstanding war claims. This sounds all right as an argument, but there are several objections to it. In the first place, if there is, as France claims, such an equation of debts among the powers, it would be just as easy to make the necessary arrangements for payment, each power knowing that at the same time it is paying out money it will be also reimbursed by it's own debtors. But there is not such an equation, for some powers owe a great deal more than others; some of the debts are inter- allied, and some are between the Euro pean powers and the United States. Those who owe the most would get the most benefit from the plan, while those who have lent the most would be to that extent the losers. Thus in principle the proposition is unfair, unless there would be a provision that no nations cancella- tion should be in excess of its borrow ings.
 That the sober judgment of Great Britain has not favored cancellation is shown by that nations early arrange ment to meet it's obligations to the United States. The utmost England sought in that discussion was postponement with reduction in interest, which was con ceded. It is intimated that Premier Mac Donald is giving an attentive ear to the French policy, but as far as the United States is concerned, England's bond for payment has already been given us, and that nation is hardly in position to sug gest cancellation to us. English bankers applauded the Anglo-American debt agreement as of great value to British financial prestige, and there seems to be a belief in British banking circles that payment of the obligation would be of more value to British credit than can cellation, even though cancellation came from us.' One thing the pow CTS should not forget, and that is the of another war and another dark period when the raising of funds will be vital concern. If the present debts are not paid, it will be much harder for delinquent nations to obtain money in future emergency.
 In the anticipated debt barley there is little that the representatives of the United States can do. Congress has all ready established the limitations in &C., cordance with which our loans may be refunded and the payments postponed, with suitable interest concessions. There can be no change in the American for eign-debt policy without congressional action. It may be said, however, that in a program of debt cancellation in which the United States would participate this nation would be the only one to lose heavily.7 Practically all of them have borrowed more than they have lent, witE the possible exception of Great Britain. The effect of the French proposition, therefore, would be for Europe to col lect from the United States war in demnity! Such proposal is prepos- terous, particularly as Europe is already collecting an indemnity from Germany. Besides, it was not our war except as self preservation compelled us to take part inSa quarrel which was needlessly incurred by European rivalries.
 As the final consideration, it must not be forgotten that, in the ultimate analysis, those who would pay the cost of cancel lation would be the taxpayers of the United States. Our government has the option of placing foremost the welfare of the taxpayers of Europe or the welfare of the taxpayers of America. There can scarcely be any hesitation on the part of those elected to advance the welfare of the people of the United States as to where the official duty lies.
 AN ENLIGHTENED POLICY
 Factors of greater efficiency in the management of the Warrior barge serv-