Evening star., 1925-08-19
The Belgian Debt Settlement.

The funding OF lne bel6Aa NSDN ~
the United States has been success
fully negotiated. Ratification OF the
agreement entered into by the Bel
rian Commission and the American
Debt funding Commission is conf
IDENTIFY expected of the Congress and
the Belgian government.
The agreement, which had the ap-
proval Of President Coolidge before II
was finally made, is generous to Bel
gium. 1t recognizes a moral respon-
sibility with regard to the pre-arml-
stice part of the Belgian debt result
ing from certain promises made by
the late President Woodrow Wilson
during the peace negotiations IN
Paris. It RENTS all interest on that
part of the debt-which interest, in
round numbers. amounts to 100000 =
900. Not the most critical could call
the United States usurious or unkind
in view of such concession. Further
more, the Belgians are given under
the terms of the agreement period
Of ten years in which small payments
are to be made, and the whole period
of payment is fixed at siXty-two
years.
Belgium, whose territory was vlo-
lated by Germany in complete disre-
gard of treaty; Belgium, which brave
ly bore the brunt Of much of the
fighting, is regarded with esteem and
affection by the American people. The
agreement just made. which seeks in
every way to be just and considerate
20 Belgium, is another indication OF
This regard, which was manifested
long before the United States went
into the World War through the
measures of relief carried out with
American money and by Americans
for the Belgian refugees.
The funding of the Belgian debt
should have a favorable effect in
Fastening the funding of the other
foreign debts. The suggestion is ad-
vanced that France will ask terms
as favorable as those accorded Bel
gium, and that this will make 1t more
difficult to obtain a settlement of the
French debt. 1t will be recalled, how
ever, that during the peace negotia-
tions all the nations agreed that Bel
gium should be accorded particularly
favorable terms IN the settlement of
international debts. And the nations
can scarcely now look askance upon
the provisions of the Belgian settle
ment with the United States, even
though they may be more favorable
than those accorded other nations by
America.
The American Commission has
steadfastly stood by the proposition
that the German reparations owed to
other nations should not be substi-
tuted by those nations for debts to
the United States. In Paris the un-
derstanding was that the pre-armi-
stice debt of Belgium should be paid
with German reparations. 1t was this
understanding that created a certain
moral obligation toward Belgium
which the American Commission and
President Coolidge have recognized
through the remission of interest on
the pre-armistice debt. The United
States never ratified the Versailles
treaty, and therefore was not bound
by the letter Of the law. Further,
Congress has directed that German
reparations should not be substituted
for the debts of other nations.
The settlement of the Belgian debt
brings a feeling of satisfaction, a
hope that the debts of France and
italy will be funded, as they should
be, in the near future. Unfortunately
the American debts have too long
been made the battledore and shuttle
cock OF European politics. Propa :
ganda has been widely circulated by
some of the politicians, seeking to
educate the people to a belief that
money borrowed from the United
States in time of stress does not con-
stitute a real debt. This has created
q difficult situation, but the admins
tration is hopeful that it will be met
successfully and that the remaining
foreign obligations will be recognized
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