Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-09-12

existing contracts. will be poisoned by
this question. 1t is not question or
one payment or ten payments, 1t Is
question of a contract running 62
years, which the debtor has already
indicated he regards as without moral
justification and no more than the
exercise of a power which our
strength and his weakness have be-
slowed upon us.
Finally the third reason, l believe,
for cancellation is that in my Judg-
ment, we shall lose in trade what we
collect in debts. In point of fact we
shall probably lose more, because IN
the end if Europe is driven into
close economic combination, our trade
will be cut while at the same moment
our debt collections are abolished
But laying aside this aspect, it is
common testimony of most economists
and financiers alike that not only
will Europe in the end have to pay
us in goods. but also that during pay
ment the most drastic forms of re-
striction of imports, and particularly
Of American imports. Will take place.
We have made debt settlements
with Belgium and Italy. and already
Belgium and Italy have returned to
war bread What will be the effect
upon the price of wheat If this ex-
ample is followed all over Europe!
We have made a debt settlement with
the British, and they have already
by manipulation of rubber prices
taken full toll of US The more we
collect from Europe the less Europe
will buy Of us and the more Europe
will seek to crowd our markets with
their products dumped here at prices
which permit them to endure any
tariff levy.
If by contrast Our Government
should come forward with the pro
posal for a general cancellation or
debts and the abolition of Preparations,
the whole world market would be
swept clear of the vast incubus Of
deadwood which Is the main barrier
to the restoration of normal CONNER
cial and industrial life. We should
sell more in every European country,
we should face less danger from the
combination of our debtors TO exclude
us from their markets and to invade
ours.
Political interference with economic
questions has been a curse from the
beginning. The best single example
perhaps is the British course with
German shipping. The British took
from the Germans to replace tonnage
lost to the submarines practically all
the German merchant marine. But
what happened? In the first place,
the world freight diminished in vol
ume in the second place British ship
building was practically paralyzed,
because with the German bottoms
! British shippers had all and more ton
mage than they needed. But the Ger
man shipyards entered on new pc
riod of activity, because they had to
replace the lost tonnage. and while
British shippers struggle with ships
becoming obsolete. the Germans are
rapidly acquiring a modern fleet. Thus
German shipyards are busy, while
British are idle, German workers are
occupied while British are unemployed
and the new German fleet will be able
to compete more economically with
the obsolescent British.
In all the various proposals to
make the Germans pay for the war
there has proved to be a hitch. be
|. cause there is no known way of
transferring vast wealth from one
country to another without upsett1ng
all the rather nicely adjusted mech
anism of international trade and
commerce. You can take provinces
from a nation, you can take gold