The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1925-01-09
INTERALLIED FARLEY ON DEBTS APPEARS INEVITABLE
Simms Explains Where
United States Stands
lALi4h A4hnr Mn+innc
With Other Nations.
By WILLIAM PHILIP sIMMs.

s.
@7 ASHINGTON,. Jan. 9.--An in
llWl terallied parley for the dis
E cussicn of debts growing out
of the World War has become I'M
perative, il not inevitable.
Some SIS 900 100000 are outstand-
ing to be collected by former allied
countries, one from another, not
counting the billions Germany owes
and is now in process of paying.
AT. 8 per cent, this already stagger-
ing sum is increasing annually to
the tune of. $750, 900 ,0OO--three-l
quarters of billion. And almost
half is owed to Uncle Sam. Here is
approximately the way it Is divided
up:
France owes the United States $4.-.
600, 100000 and England sS,o0O.0O0,-
900.
Italy owes the United States and
Great Britain $4s500.OOO, 0O0
Belgium owes the United States
and Great Britain 100000, 900.
Great Britain owes the United
States $4.750, 900 900.
The smaller countries owe Bri-
tain, America and France $780,
900 900.
Russia owes France s4,ooo.OOO.-
O0o.
Russia owes the United States and
Britain $500 100000.
Smaller Sums
| A good many more millions are
scattered about Europe, but such
sums are mere chicken-feed COM
pared to the above and may be left
out of the present reckoning.
President Coolidge and Secretary
of State Hughes take the position
that German reparations payments
to the allies, and the payment Of
what the allies owe us, haze nothing
in common. Which they have not,
any more than what you owe the
grocer has to do with what the
grocer owes his landlord. But unless
you pay the grocer, the grocer may
not be. able to pay his landlord. SO
there is some connection, after all,
perhaps vital one
Great Britain not only can pay,
but is actually paying, her debt to
the United States, irrespective Of
whether she collects what is coming
to her. Next to ourselves she is the
worlds greatest creditor. her former
allies owing her some SIC, ZOO, OO0, 900
as against their debt of $4,000, 000,,
900 to us. She stands to be the
heaviest loser, for not dollar is as
fsured to her while 40 per cent of the
allied debt to us is assured by
Britain.
Russia Regulates
France insists she can never pay
the United States and Britain aIl she
owes unless ell her debtors pay her.
including Germany and Russia. And
Russia can be wiped off the slate
right now. In fact Russia has
already repudiated the debt. It is
likewise problematical how much the
smaller countries can or. will pay
France. Nor is the ultimate sum
that can be collected from Germany
fixed or even known.
frances national wealth is esti-
mated at 400. 900 100000 francs at
| five francs to the dollar. Her ma
tional debt--internal, floating and
foreign-would reach somewhere
around 0,0O0, 900, 900 francs, or
frightfully close to her national
wealth. OF course francs today are
worth not quite third Of their par
value, which increases what France
is worth, in francs, but at that mar
gin is dangerously clofe.
The national wealth q the United
States, for instance, is estimated, in
round figures, to be $500 900 ,000,-
000-not francs-or about $500 per
capita. while our public debt
I.amounts to less than $4,000 ,00O,-
600, or approximately $199 per cap
ita There is already loud complaint
in this country because Of the nigh.
taxes. Suppose the French govern
ment tried to tax the people of
France to the point of making 1t
possible to pay her entire debt, lri:
aided by the payment OF billions to
her?
France Should Pay
An interallied debt parley. might
do much good II properly handled.
France ought to pay every cent she
owes, or at least every cent she can.
A practicable business arrangement
was evolved by American experts
whereby Germany can pay what she
owes. Some similar plan, properly
modified, should be found to ascer-
tain what France can pay, and ar
rangements made for her to pay II.
An interalIied debt parley, with
the United States participating, does
not necessarily mean that we would
be left with the bag to hold or that
our European debts would be can
celed. To the contrary, such con-
ference would serve to clear the at
mosphere.
Today the British, French and 9th
ers are picturing Uncle Sam as a
Shylock demanding payment forth
with in money or flesh. Gradually
Z worldwide sentiment is being
built up against the United States.
This should be stopped, and could be
II, at conference, we aired the
whole situation and nade-our posi-
ton plain for all the wopId q, 80