New Britain herald., 1925-08-11
BELGIUsfS ATTEMPT TO FUND DERTC

The customary flowery phrases began the meeting Of the World War Debt Funding commission at its first meeting with the commits sion appointed by the Belgium gov ernment yesterday. The Belgian debt Of s47o, 100000, including in- terest, Is fourth in size of the war debts due the United States, al- . though only ninth of that owed by Great Britain and a seventh of that owed by France.
 In attempting he refunding operations, or even discussing them, Belgium again shows herself a para gon of courage. She is the first of America's big debtors with a severe ly depreciated currency to attempt B serious refunding of her debt. France and Italy, however. are ex- pected 10 follow in September. De- dcisions arrived at during the Bel gtan discussions, may become prece- dents for these two nations, lending 8 special significance to the meet ing entirely apart from the debt.
 The strength of Great Britain's exchange rate made the problem of refunding the American debt a much more simple matter than will be the case with Belgium, France and Italy; while in the case of Hthuania, Finland and Hungary the debts in themselves were comparatively small.
 Settlements of war debts made by the United States hitherto have been modelled on that of Great Britain, so that the question arises whether the government is prepared to make concessions in settlements with nations less able to pay. either through poverty or a depreciated exchange. than those which have already settled. The concessions may be an extended moratorium or of a decreased rate of interest, as there is no likelihood that Congress will consent to remission of the principal.
 The pledge of Baron De Cartier, the Belgian ambassador, made to Secretary Mellon yesterday that Belgium intends to honor all her obligations was a splendid begin ming in the conversations in Wash ington. That post wcr conditions in Belgium and the appreciated cur rency should be taken into consid- erstion. as the ambassador suggest ed, sounds reasonable. We do not wish 10 play the Shylock, yet, as Secretary Mellon laid down, this na- ton will continue to insist upon the integrity Of international obiga- tons, and there Is no doubt that this course mcets inc full approval of nearly all American citizens. 1T international ohllgatiors are 10 he considered scraps of paper after they are madc the safest plan naturally would be n"1er to make any.
 Following the armistlco, Belgium shared in the general European prosperity and IS credited with haH- ing made up for many of her fnan- cial losses durIng the war. But in the second half of 1921, however, the world depression reacted upon her financial and industrial sitna- ton, and the complications of the German situation affected h'r es- peciany. The collapse of ,he mark . and the occupation of tho Enhy had tremendous results upon her eco- homie condition. The kuhr occupa- ton meant that for q long time she would not receive ths cash repara- tons she had counted upon, and that she vas also cut of from de- nyerles in kind. which were 50 i'm portsnt 10 her industries. The ter r,inauon of the receipt Of German coal and coke demoralized her in- dustrtal situation and forced the purchase of industrial fuel in other and more expensre markets. The . Belgian franc followed the French franc. Yet her credit abroad re- mained good. and she was able to . float substantial loans in Wall . strest
 Final settlement Of the repara- lions problem through the Dawes i plan vas of vital importance to Belgium. Among other things, Ger man rspaynsnts in kind were again