Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-02-20
BURTON SAYS DEBT
STAND IS GENEROUS
Political Study Club Hears
Analysis of Subject by
Commission Member.

Analysing the work of the Ameri-
can Debt Commission, of which he was
member, Representative Theodore
f. Burton of Ohio. in an address be-
tore the Political Study Club, yeSter'
lay afternoon at the Washington
Club, opposed cancellation of any part
IF the $40 00, 900 900 foreign debt due
the United States, and denied that
the Government has been severe In
axacting settlements from debtor ma
tons.
Rather, the United States has been
not merely fair, but generous, MI
Burton declared.
Of the settlements negotiated with
IS countries, Mr.. Burton explained
that II of these have been given 1uii
force and effect. The agreement WIN
Jugoslavia awaits approval by the
Senate, and that with France approVai
by the Senate and by the French gov
eminent. In all these settlements the
commission adhered to the principe
of giving a period of e. years for pay
ment.
Replies to Critic.
But it Is said that the burdens I'M
posed upon the debtor countries are
beyond their capacity to pay, and that
this alleged inability has been much
accentuated by our tariff act of 1917.
said Mr. Burton. "A former candidate
for an important office in this country
made a statement in France recently
that the payment of these debts would
subject Europe to slavery for a gen
Grafton. That statement is absurd.
In refutation of the charge that the
tariff proves a barrier to the Euro
pean capacity to pay, Mr.. Burton
pointed out that the total payments
which European countries must make
under debt settlements for the first
five years average only 500. 100000.
"The increase in imports into the
United States from European coun-
tries and their dependencies between
the fiscal years of 1922, when the com
mission was organized, and 1926, was
81, 422 900, 900 in 1922 to $2.730 900, 600
in 1926, an increase of 81 ,30S.000 900, or
so per cent he said. During this
time our exports to these countries in
creased by only % per cent.
1.-THE figures relating to exports and
imports of the United States seem to
point to a time when the balance of
trade will be against us. This is due
to receipts Of payments from abroad
and to the rapid increase in consump-
ton by our people. A tariff barrier
can not be erected so high as to pre-
vent an increase of imports"
Post Armistice Advances.
In the discussion of any question
of debt cancellation. Mr.. Burton de-
clared. reference should also be made
to the distinction between pre- -armis-
tice and post-armistice advances 10
the respective debtor nations.
ut can by no means be claimed
nf ia let 10
Indebtedness should be made, because
the most substantial share of the
amounts was for relief and rehabilita-
ton and in some instances there
were expenditures for new enter
prices" he said. 'Of the 10 ma
lions with which settlements have
been made, incurred no indebted
ness to us prior to the armistice of
November II, 1918. Nevertheless,
been shown to each of these.
The best illustration of country
in which there was division of eX-
penses between pre-armistice and
post-armistice is that of France. When
the amounts were liquidated in the
recent settlement made by tn COM
mission. 1t was found that of the
principal sums advanced, part of it,
$1,97O,00O, 900, was pre-armistice and
$780, 100000 post-armistice IL the
rate of interest on the latter amount
should be fixed at per cent, it
would appear that. as result. pay
ments would be almost exactly equal
to the total sum which France must
pay under the terms of the settle
ment. In other words, figuring on
this percentage, which is substan-
TALLY less than what France is now
paying. the United States would for
give all advances made before the
armistice and require payment only
of the amount advanced or accrued
thereafter"
Suggests Bond Surrender.
Declaring the loans made to these
countries. aggregating more than $10.-
0O0,O0O,0 600, were authorized in the
liberty loan act. Mr.. Burton suggested
that those who advocate cancellation
cannot be consistent unless they
promptly surrender to the United
States Treasury the bonds which they
hold. the proceeds of which were lent
to European countries
In any question of cancellation, Mr..
Burton pointed out, there is always
the apparent certainty that, lin view
of the antagonisms which prevail in
Europe, with the ambition to sur
pass each other in military and naval
armament, the amount released would
inevitably be expended for increa sing
their military and naval armamen Mt
ana thus create constant threat to
the peace of the world"