Evening star., 1925-11-17
BY FRANK III. SIMONDS.

The settlement of the Italian debt
represents a triumph OF common
sense and indicates statesmanlike
courage in the face of very possible
domestic misapprehension- Following
the failure of the French negotia-
tions, nothing was more inevitable
than that a similar failure in the
case of Italy would be bound to have
unfortunate reactions abroad and
weaken our position in the eyes OF
the world. The fact that there has
been very general European criticism
of our attitude would not be modified
or improved if, following failure here,
Rome should suffer the financial cri-
sis which has already come to Paris.
The terms to which Italy has
agreed will not. to the Italian mind,
represent any large degree of gen
erosity on our own part, for the SIM
pie reason that what Italy has agreed
to pay surpassed anything that ltaI-
ians had expected. Nevertheless, the
agreement has the advantage of be
ing accepted by the Italians, and
therefore is presumptively possible.
Broadly speaking, we have asked
the Italians to pay on an average OF
2L per cent to cover the principal
and interest of what they borrowed
from us. or / IL per cent on what they
borrowed plus the accumulated in
terest This stands against an av-
erage of Az per cent, which we asked
from the British on the sum actually
borrowed by them, or per cent on the
principal plus the accumulated inter
est. The best offer which we are re
ported to have made to the French, al
though it was never officially ac-
knowledged, represented about 3 per
cent on what they had borrowed plus
accumulated interest.
Fare Better Than Britain.
In a word, Italy's bargain is three
times more advantageous than Brit
aims and twice as advantageous as
that offered to France and rejected
by CaillauX. All things considered,
this Is not an unfair or unreasonable
estimate of the relative capacity of
the three countries to pay. And it
does bear out our assertion that
capacity to pay would be the test of
government in every case.
Looking to the net result, we have
now settled with Britain, Italy and
Belgium among the larger countries,
as we'll as with half a dozen smaller
nations, of which Poland was our
largest debtor. We are now entitled
to receive an average of $250,000, 900
annually, in round figures, for the
next two generations and the ulu-
mate funding Of the French and
other smaller debts outstanding
would certainly raise this to more
than $500 900. It will. however.
be number of years before we
touch this maximum and meantime
the American taxpayer will continue
to carry part of the load.
This represents. assuming later
payments from France, a return of
$3.50 100000 annually on loans aggre-
eating $4,000, 900, 900, or, as it stands,
return of S250,000,00 on loans
amounting to $4,000 900, 900. Britain,
which during the war and since lent
| upward Of $4,000, 100000, has so far
received nothing in interest or prin-
cipal and the single prospective con-
ditional settlement. that with France,
would bring in $62,000,O00 annually,
or per cent on the original loan
plus accumulated interest.
Far Exceeds Reparations.
Assuming that Italy will now fund
her debt to Britain on similar terms
England will receive something like
$50 100000 from Italy annually, and
Italy will pay abroad on the average
for the next two generations some
thing like S86,O00,000. AS the italian
10 per cent share in reparations can
never conceivably amount to this sum
we have now the extra ordinary spec.
tacle of another victorious nation &C
tually paying abroad, as Britain has
been paying.
Notwithstanding the Italian agree