Evening star., 1925-11-09
LABOR HEAD FLAYS
BORAHi'S DEBT VIEW
Vol Urges Reduction of War
Obligations to Promote
World Prosperity.

Matthew Vol, vice president Of
the American Federation of Labor,
last night issued a statement urging
remission or reduction of the war
debts owed this Government and chal-
longing Senator Borah on his posi-
ton on the debt question.
MIR. Woll proposed that wage-earn-
ers support cancellation or modera-
ton OF war debts, in an effort to pre-
vent the Italian negotiations from
following the same way as the re-
cent French negotiations
Challenges Borah.
Disagreeing with Senator Borah,
Mr.. VOL challenged "the truth, the
logic. the humanity and the common
sense" of the assumption of the SEN
ator. that any friendliness in this
matter toward the debtor peoples
means a betrayal of the people Of the
United States"
1.-TWO major considerations must
dominate this European debt ques-
tion," said the statement.
international debts must be set
tied, and they must be settled in such
a rational way as to promote the
prosperity Of debtor, creditor and all
nations. The future prosperity of the
debtor nation requires that enough
should be paid to sustain it's financial
honor and It's credit for future COM
mercial borrowings. but that no such
excessive sums should be paid as
would injure its productive power, its
accumulation Of capital-and its fu-
ture ability to pay its international
debts.
There is another limitation; the
world is in large measure an eco
nomic unit, and 1t Is to the interest
of all nations that all should prosper.
Nothing could be more damaging
to world prosperity than that huge
and crushing payments should be
pressed out of the less prosperous
and most heavily taxed of the ma
tions by the most prosperous. Ul-
timately America would lose as much
as any country by the economic op-
preston of the nations of the Euro
pean continent.
THE first consideration is that
there should be some settlement
that an end be made of a condition
that makes for international disorder
and ill-will. Nothing could SO delay
and obstruct any conceivable settle
ment as the propaganda of enmity
led by Senator Borah and his kind
Every word that he utters on this
subject tends to convince the peo
pies of Europe that he and those
he represents are willing to have
them as economic enemies and would
rejoice to have them as economic
serfs. If there is ever a European
bloc directed against the United
States. Senator Borah, more than
any living American, will have to
be credited with that notable achieve
ment.
Substitute for Lives"
THE Senator wants US to forget
that we offered these loans as a tenn
porary substitute, in view of our un-
readiness to send over our quota of
men when we first entered the war;
that we deliberately offered our dol
lars as substitutes for lives. and that
the leaders on both sides of Congress
on the floors of the House and Sen.
ate expressed Americas Willingness
to turn these loans into gifts if need
be. Senator Borah was present, but
possibly he stopped his ears Now
| that the loans accomplished their
purpose and helped to win the war
| we have a right to expect repayment
but within reason. and not to the
| extent Of infiicting grave damage or
| our associates who. with our dollars
| and their lives, maintained the from,
until our armies were ready to
Il am confident that. backed by
public opinion, the administration
will reach a generous, sensible and
| advantageous settlement, first with
| Italy and then with France. And
! there can be no question whatever
| that any settlements to which these
| nations will submit-if literally inter
| preted-as they will be by all en-
| emies of settlement-w1ll amount to
| a partial cancellation of the debts.''