The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1926-05-04
DOUBT EXPRESSED
IF AMERICA WILL
COLLECT IN full
Deals With Europe Call for
More Money Than Total
u. S. Debt.


WASHINGTON, May 4,-With
the ratification of the French debt
settlement here and at Paris, the
funding of the foreign war debts to
the United States withstand virtual
~ complete.
The deals represent the biggest of
their kind in history. II the debtor
nations all meet their payments for
the next siXty-two years as specified
in the agreements signed, the United
States will collect the staggering
total of $21. 904, 100, 900, principal and
interest, or nearly two billion dollars
more than our entire national debt
today
That much money represents APP
woman and child in the country, or
$500 per average taxpayer
Russia is left as the outstanding
nation not having signed up. With
interest, she owes us $256,000, 900.
But the United States does not
recognize Russia and there is little
chance Of collecting from her for a
long Tune 10 come.
Austrian Postponed v
Settlement OF Austria's $50 1000, 900
debt to us has been postponed for
thirty years by agreement. Jugo-
slayia, owing $65,000,000, and Ar
menia Greece, Roumania, Liberia
and Nicaragua, owing comparatively
tritling amounts, have yet TO come
to terms.
VIII the United States collect this
almost $4,000 00O,OOO There are
those who say no. Sixty.two years
is a long time and many things can
happen. Wars have a way of chang
ing situations drastically and even
peace-loving America has. had a
major war, on an average, every
twenty-five years.
Then there are the economists
who claim SO much money pouring
into a country cheapens gold, raises
prices and does general harm.
Those claim the, United States itself
will take the initiative some day and
ask for a revision for its own good
First Twenty-Five Years
In view of all this. therefore, it
may be Of interest to note how much
money we stand to collect, not dur
ing the entire sixty-two years, but
during the. first twenty-five years.
In each funding agreement, COM
paratively small payments are called
for at first. Italy, for example, pays
only $1,000 900. for the first five
years. After that the amounts grad
ually increase until in 1850 she will
pay $12,664,500. The French pay
ments range from 500, 100000 for the
first years to $125,000, 900 in 1850
And so on. Thus twenty-five years
from now, we will have collected, If
all goes well, total Of 1851 900, 900
or only about one-third the amount
called for during the life of the
agreements.
What will happen after 1850 few
are willing to forecast. Aside from
the usual hazards. and the
economies involved. there are other
things to be considered. Fundlng
a war debt is not paying it, and
while the. United States has most
generously reduced every one Of the
debts from 25 to rs per cent. the
citizens of the nations owing us- the
money do not see it that way. All
they will be able to see, generation
after generation, Is that they are be-
ing heavily taxed to pay Americans.
The resentment engendered by being
Tied to the American chariot" as
some already express it, is a factor
the United States may yet have to
reckon with and weigh against the
advantages Of the money coming in.
But, for the time being, barring
n probable losing fight in the United
States Senate against the French
settlement, and a similar fight in
Paris. the country's war debt deals,
to ail intents and purposes, are
closed. The chances are, however,
il Is not for always.
LICENSES REQUIRED