The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1930-06-02
U. 5. MAY Lose
WAR DEBTS IF
TARIFF PASSES
Other Nations Can Not Pay
If Trade With America
Is Barred.
80 BILLIONS INVOLVED
Yankee investments Abroad
to Exceed 19 Billions
by End of 1890.
30 BILLIONS INVOLVED
BY WILLIAM PHILIP SIMMS
scripps Howard Foreign Editor

WASHINGTON, June 2.-Furtner
drastic reduction or cancellation Oh
the war debts at a cost OF pililonS
of dollars to American taxpayers
may become inevitable if the trace
killing tariff bill now nearing VoCe
in congress becomes law.
Americas total foreign invest
noents. not counting the war depIs,
amounted to nearly Sl7OOo'OOO,Uo'
at the end of 1929. AS we are aou-
ing to these investments more Iilali
60 400 600 900 a year, by the END Oh
1oao foreigners will owe us approx
,ostelv SIG eco 100000, plus some
Ell mo 600 900 in war debts, or
total of about $4,000, OOOOOO.
That makes $3.50 head Tor every
man. woman and child III Alii'i NO.
Feat Is Impossible
Normally, with international Crd"7
IN full swing, repayment OF TINS CO.
i n sum would present no serious
die1cultv. Great Britain proSpereo
se che never prospered before Wnei,
bor foreign investments amounted
to $4,000 100000. But Britain was
free-trade country, Witnou' q
tariff wall between her and her
dehtor nations. Her Imports as
we'll as her exports, led the worie:
Nv the time the proposed taIilL
hog;ns to have its full effect on our
foreien trade Americans with m
vestments abroad will be trying "
Get at least their little per CENT pei
snnum on $4,000, 100000. -.
rrl7is amounts to no less IMAM
{, 5on moo 600. and that this huge
s,,,,, can he collected. from foreign
ers without our buying large quah-
titles of goods, services ana oVnsl
things from them, economists az"
NIT is simply out of the question,
Our ordinary sales overseas al
readv exceed our imports by some
$500 600 900 year. But there on {
the sinvisible" items to be taken llCo
accountable purchases ana QUIZ
expenditures of American tourists
abroad. remittances home OF ioL,
eipners working in the ohlUeo
States, and so on.
Much More to Collect =.
These reach a total OF approxl-
mately billion dollars annually, So
counting these in. foreigners may
be said to profit, in their trace Nv WIZ
us In the tune OF $l2o,OOU'UuO
wear. or Whereabouts.
But without counting repayment
on this principal of $30,OOO,oOO'OOO,
foreigners soon must begin 10 pay
ne at least $1,5O0,0O0,000 annually
if we are to receive even 5 per cent
on orr investments. The $125,OOO,-
ooo mentioned above, therefore, IS
hardly a drop in the bucket. we
must collect $1,375, 100000 a year IN
addition.
Foreigners, of course, may go on
for q while paying their debts to u.s.
regardless of which way foreign
trade balances go. They can borrow
the money, mostly from us, with
which to do it.
War Debts Will Go
Like manufacturer getting
started they can carry on Tor TWO
or three years with more gong o uC
than is taken in, but eventually the
roanufacturer must sell enough TO
make a profit, or break even, or ne
goes bankrupt. Sooner or laVer
America must trade with her DEBT
ors. directly or indirectly. or she
won't be able to get her money.
And if it ever becomes a case OF
reducing or canceling POI ions OF our
debts abroad, the first portion 70 80
will be the war debts.
The senate has insisted that tneSe
war debts must be paid to the last
red cent. but congress, by passing
its killing tariff measure may
veto collection impossible.