Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-12-21
WAR pEBT REVISION
POSSIBLE IN FUTURE
Officially U. S. Remains Firm
on Policy-What May Be
Done Is Uncertain.
RY DAVID LAWRENCE.

Although the proposal made Dy the
40 members of the faculty or Coiun
hia University for an international
conference on debts falls on dear ears
at this time, the significance or the
move did not escape attention.
For the sentiment of Congress Is
expressed by the remark of Senator
Gamer of Kansas that nobody knows
what might be advisable few years
hence with reference to adjustment
of the debt question.
MANY reasons are advanced to reject
the Columbia proposal at this time,
mostly that the French debt agree
ment has not yet been approved oy
the Senate or by the French Parma
ment and that any move from WASH
ington would certainly delay ratlflca-
ton in Paris. 1t is recognized, how
ever, that what the sponsors OF the
proposal had in mind was a softening
of the harsh attitude which American
public opinion is presumed to hold
with respect to the debts in the nope
that the French Parliament might
not be disposed to look at future re
vision as hopeless.
Officials Guard Comment.
An unofficial body can say what it
wishes on political or economic ques-
tons, and no matter how sympathetic
members of Congress or admln1Stra-
ton officials might be with some OF
the arguments advanced for debt adj
iustment. they hardly would deem 1t
discreet to say so now.
Perhaps the whole point OF view or
the executive branch of the Govern
ment can be summed up in the phrase
Capacity to pay" Time and again
to loa int
phrase was not merely used as
basis for discussion in making the
debt settlements, but in the final
agreements, so that Europe need not
be concerned about the probabilities
of revision If that should become alb
solutely essential.
In other words, American officials
take the position that If Europe can"
not pay 10 or Is years hence, and 1t
is proved that her capacity to pay
has been overestimated, then the
United States would he bound for
business if not for moral reasons 10
revise the agreements.
The clamor for revision, however,
is not expected to wait upon the de-
velopment of an emergency in the
budget finance of the debtor coun-
tries. European pubiicists and econ
omists already are busy pointing out
that the debt settlements are unsound
and should be revised. To the eX-
tent that such line Of thought APP
peals to American economists and ed
ucators, as evidenced in the petition
of the Columbia University faculty,
will the subject be agitated from this
side of the Atlantic.
Opinion for Debt Revision.
The incident indicates clearly that
= considerable body of American opin-
on will be marshaled to ask for re-
vision of the debt agreements. Can
,ellation appears to have been aban-
Toned as an objective In favor of re-
lision mostly on the theory that the
lebt settlements themselves recog-
,1Ze the idea of q reduction from the
ull principal and interest combined.
The objection here to an interna-
tional conference on debts Is that the
United States would stand alone be-
fore the debtor nations and that 1t
would not be a conference, but uni
lateral attack on American policy
Under the circumstance, If revision
is deemed wise at some future time,
the United States would rather deal
with each case on its merits.
When the French settlement is APP
proved a resumption of the discussion
of pooling debts is bound to arise.
Bernard M. Baruch, for example. has