The Carbon County news. [volume] (Red Lodge, Mont.) 1924-1931, 1925-04-16
SOUND PRINCIPLES &
FOR ALLIED DEBTS
Payments to America Should Be
Guided by Dawes Plan,
Says C. {. Mitchell.

The fundamental principles OF the
Dawes plan for settling the European
war debt question are applicable To
the problem OF the Allied debts to the
United States, Charles e. Mitchell.
president of the National City Bank
Of New York. declares in an article in
the American Bankers Association
Journal Mr.. Mitchell says:
Debts between nations are always
. source Of international trouble. and
consider 1t Of great importance that
our swn economic ~ well ~ political
relations with such countries as
France. Belgium and Italy may be Inn
proved by an early adjustment OF
their debts to our own national gov
eminent.
Country Endorsed Dawes Plan
Il hope that we are gradually learn.
Ing that such debts. II unduly forced.
may result more caiamitousiy to the
commercial interests of our own coun-
try than to those of the debtor coun-
try This talk of forcing payment OF
every dollar to the last penny is
commercially unwise think we may
assume that the Dawes plan has had
the Endorsement of the American PEG.
pie through their election OF General
Dawes to the Vice Presidency of the
United States. That plan is one that
establishes fundamental principles
which may be applied In considering
the debts OF one nation TO another
resulting from war
1.-THE first principle. as | sea II. is
that the yoke of the war debt shall
not be held as a burden upon the
people beyond the generation that had
to do with the war. This principle Is
clearly minated in the fact that the
industrial and railway debentures
which form the principal security and
means OF payment of the debt carry
5 per cent interest with per cent
amortization, which means that such
obligations are to be over a period OF
about thirty.six years
An Invitation t. Trouble
ANY attempt to force the carrying
OF such debt burdens to the second
and third generations Is but an en-
graved invitation to further trouble
"The second principle is that the
debtor country shall be taxed to the
limit whilo the debt reinains. but in
no event to point where its eco.
nomic structure collapses under the
strain. and further, that the nationals
of the debtor country shall in no case
have lesser burden of taxation upon
them than have the nationals OF
the creditor country-another princi
pie the soundness of which cannot be
questioned,
THE third principle is that with
such taxes collected, payments there
from shall be made to the creditor
country to such an extent only as they
can be made without disrupting inter.
national exchange and commerce. The
soundness OF this last is apparent on
its face.
These | regard as the fundamental
principles of the Dawes plan, and all
of the hundreds of pages of the so.
called Dawes report are devoted to-
setting up the machinery by which
these principles can be put into effect
IF these principles are accepted as
sound then they must also be sound
principles by which the payment OF
the debts OF allied countries to us
shall be determined and we would
best apply such yardstick as our
measure, rather than attempt to make
popular the slogan OF every dollar to
the last penny In the adjustment OF
our foreign relations, essential to the
development OF increased export and
import trade, there can be no problem
of greater Importance than reaching
q sound and final conclusion as to this
irritating question Of the debts of AL
Had noftnfrfaa ~ ns,raa1rtor