Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-01-07
LEARNING ABOUT LOANS

The new French Ambassador. to
whom BRAND has entrusted the i'm
portant duty Of securing debt set
Element, is on his way to this coun-
try. Congressman Andrew Of Massa-
chusetts will not need to greet him at
the pier to be persona grata with that
distinguished gentleman. being on
record as an advocate Of easy terms
to our former ally.
His latest is a reply to criticism
by q member Of the debt refunding
commission. In this Mr.. Andrew
says:
"The Debt Funding Commissioners
are to be congratulated for their
growth In wisdom and common sense
as indicated by the increasing liber-
atty OF their settlements with our
erstwhile associates in the war. They
are gradually learning to regard our
former allies as prospective CUSTOM
ers whose economic recovery and pros
perity ultimately will rebound to our
advantage, and bring to US greater
profits than money wrung out of
debtors forced into bankruptcy. The
greater misfortune is that the COM
mission and Congress and the country
have been slow to reach this discov-
cry. Otherwise they would not by
their refusal of the much more liberal
offer Of France, have helped to push
that country into the desperate
straits In which she now finds her.
self.
1.-THE commission, in my Judgment,
showed great wisdom In lowering the
interest on the Italian debt to less
than / per cent. and In granting to
Italy a virtual moratorium for a num-
Der of years. We shall gain in the
long run through increasing trade
far more than we shall lose in inter-
est on our loans. And we shall retain
the good will and cooperation of the
italian people"
simultaneously with this Secretary
Mellon tells the Associated Press
that 'the entire foreign debt is not
worth 90 much to the American PEG.
pie Ia dollars and cents as q pros.
porous Europe as q customer" He
insists the commission should be
guided by country's capacity to
pay.
Congressman Andrew leaves us to
infer that France has been unable to
meet our terms. This is hardly in
accord with the evidence that the
French people are in good financial
condition. but their Government for
political reasons has been unable or
unwilling to tax them as governments
Of some of the countries tax, England
for instance. Not only that but the
French people have been told that
we are inercenary because we have
insisted that their legitimate burden
should not be placed upon the shoul-
ders Of American taxpayers, unless
that be necessary. The necessity isn't
yet altogether obvious, but the de-
sires of those, who wish to get the
settlement out Of the way and busi-
ness going again. those who wish for
greater trade and chances to loan
capital. to-. good advantage, are oh.
vious. plainly so.
The outlook now is that we will be
very generous with France ana get
no credit for 1t. On the other hand
had we been generous in the first
place. we would have excited no com.
passion in their hearts; they would
have taken 1t as a matter Of course,
as had they not been told they really
didn't owe us anything. Anyhow.
we will have learned that our govern
ment better not advance money to
European governments expecting to
get 1t back without trouble.