New Britain herald., 1927-03-24
MELLON POLICY
 AGAIN ASSAILED
Columbia Professor Joins Forces
 With Princeton Head

Nyw York. March = CP4-settle- r1ant Of allied war debts must ue ou q basis that i- morally dc.ensihia aS W au as economically " sound, Ed t.,a F. A. Seilsman, McNlcker pro- i. ssor Of political economy at Colum- nla university has declared in an <Ncr 10 Seer. .'ary oi the Treasury Andrew W. MeloH's recent defense ot tho administration debt policy.
 Dctanlln5 the position taken by l. members Of the political science faculty Of Columbia university last December, which was endorsed ny President Hiutgu and 1l6 members ot tF4 faculty Of Princeton two weeks ago. Professor SeIigmaa's let .ar cites numerous alleged errors oi fact and interpretation in Mr. Mel lun's communication to Dr. Hioben after publication or the Princeton endorsement.
 Professor SoliEman attacked the principle of "capacIfy 10 pay" de- tended by NIT. Mellon. l. Was a weak criterion upon which 10 base debt settlements because it is obviously impossible to make such au estimate on any lair and scientific basis for so long a period in the future as @ years" he said,
 You pass over in silence those moral aspects Of tho debt situation which formed the principal basis of tha Columbia and Princeton state ments." Professor Seligman wrote to M- Mellon "I desire only 10 point olt that your letter fails 10 meet this issue at all The question will not be finally settled until We reach an adjustment that is morally d"t,nsiJlc as well as economically sound.'
 To Mir. Melons charge that the faculty members Of the two unlVcr- sites based their statement on in adequate knowledge of the facts. s. Hgman said the professors were fam ii,ar with all the facts made pubic by the treasury department.
 The ability of France to balance Ter budget, had shown there was no present basis for Mir. Melons state ment that tho publication of the Columbia statement was calculated to impcril acceptance of the debt agreement by France, although, he admitted. there was some basis for such fear at the time the state ment was issued.
 Attacking the economic phases of Mir. Mellon's defense of the debt settlement policy. Professor Seiig- man declared it was gross error' to say American dollars made Amer ican purchases abroad more costly because the money enabled the al lies to keep exchange near pre-war levels.
 The most perploxing errors. how ever, are found in the manner in which you link up the debt payment with German reparations," the pro- lessor wrote T do not allude 10 th" point so well emphasized by President Hibhen, that you are here completely reversing your former at v lo, which. until your recent let - always disclosed an adamantinn EIe1l 10 admit that debts had any taiu" to do with separations. This i. frustrated by the persistent re- iHSdl or the debt commission 10 al- low the French to inspect the safe guard clause based on roparatiOns, q clause which probably would have ensured the acceptance of the Der cngcr agreement.
 'I come next 10 an error which rankles deep in the hearts of our French friends. You assert that debt
 
 10 undergoe great additional bur dens. because they will receive from separations more than they pay Us. You entirely overlook the fact that France has already spent on restoring the devastated regions all, and moro than all. of the sums she will ever receive from Ger many"