Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-09-01
WHY ENCOURAGE DELINQUENT
DEBTORS

1t has been said that Americans
should be united at the coast line,
81 nowhere else; that we should
stand as a unit on a vital foreign
policy. Very many Of us think the
|criticism our foreign debtors have
'lavished upon us because we have
sought to collect Of them. accord
ing to their ability to pay. the loans
which they borrowed Of US, assuring
us at the time Of their ability to
settle. unjust in the extreme But
they can turn to more' or less prom
inent Americans, who advocate can
collation. Of the debt.
Right here, and at home, there
arises in the minds Of not a few the
query whether the impelling motive
Of those advocating cancellation be
altruistic or selfish; whether they
really believe 1t just to cancel those
debts, or whether they are interest
ed. directly or indirectly. in loaning
private capital in those countries at
high rate Of interest. wish to loan
more. also are anxious to be as
sured OF ability to collect. Be as
sured none Of them would favor can
ceiling private loans. Likewise We
hear none of them alluding to the
advantages secured by our Allies
where we secured none except op-
portunity to withdraw.
Great Britain annexes territory a
million and half square miles in
extent to say nothing of her man
dates; France gets back Alsace-
Lorraine with two millions of people
and large and profitable industries
control OF the Saar Valley coal
mines. and Is today the military
power Of Europe; Italy takes terri
tory from Austria. Mussolini is
cutting Italy's expenditures to the
bone as she hasn't much save labor
to export to offset the imports of
raw material which she needs.
France is Tuning because we ask
her to pay AZ cents on the dollar on
terms which amount to collecting no
more than we loaned to her after
the Armistice. Yet Clemenceau
writes letters protesting that France
is not for sale, although as premier
he borrowed with promise to pay.
England, that was really prompt
and business like in her settlement,
we hear muttering "Shylock" when
she looks our way. Here at home
we hear Newton Baker secretary of
war under Wilson, telling us Europe
cannot pay in anything but ill-will
and that if we wish to keep her
trade We must cancel the debts.
It occurs to some of us, though
evidently not to Mr.. Baker, that the
psychological moment for currying
favor of those, who give us no
thanks for what we did in the war,
is past for the present, If it ever ex-
listed. If our foreign debtors show a
disposition to meet their honest
obligations and come to the place
where economies and peace footings
at homo and development Of their
spotis Of war fail to produce results
which 1t now appears they will pro-
duce, then they may be In q mood
to appreciate favors. They are not
now in such mood; they will trade
with US under any conditions only
30 much as it may be to their ad-
vantage to do so; not one spark Of
gratitude toward the Americans will
be lighted by cancellation.
How many Victory Loans would
have been made II our Government,
when asking the American people to
take the Government notes and fur
nish the cash to loan abroad, had
said these debtors would probably
refuse to make good their pledges to
pay and we would have to tax the
American people for the money with
which to pay back to Americans
who loaned this money abroad? The
Government didn't have the money
TO loan; the people loaned the money
they had earned and saved. Now
ars We to tax those people to cancel
those notes7 Are We to agree with
the foreign governments, asking for
cancellation. that when they prom
ised to pay and said they could pay.
they did not tell the truth? Is that
The attitude which will nurture
stability and the faith that should
axist between debtors and creditors?
Would such procedure strengthen
the faith on which we would base
private loans in those countries?
When, II ever. honest purpose on
the part Of those debtors has been
demonstrated; when they have
shown their sincerity and the Amer
lean people see that they are unable
to meet their obligations to the ad-
vantage Of all concerned, then will
be time enough to appeal to our
generosity. Then we have faith the
people would generously respond and
by that time Europe would be really
appreciative. which assuredly 1t is
not now. Why should the Bakers
or the bankers-lend their influence
to the discomfort Of indisposed