Evening star., 1931-12-20
BY WILLIAM HARD.


Senator David A. Reed of Pennsvl-
vania has furnished the most spectacu-
lar political incident of this Congress
so far. This writer queried him upon
1t as follows:
president Hoover and Secretary Of
State Stimson and Secretary of the
Treasury Mellon. your dear Pittsburgh
friend. don't think so much of your
speech against any further reducing
right now of European governmental
| indebtedness to the United States
Treasury. Why did you break with
them?"
The Senator looked as disguised as
he often looks He queried in return:
Cant anybody think that man
can differ with another man without
breaking with him? I'm not attacking
anybody. In just explaining my own
vote"
Won't you explain it further? Do
you deny that Europe needs further
relief from the United States?"
There are two things I think about
it said the Senator In the first
place, the importance Of the debts in
the general economic relationships be-
tween Europe and the United States is
place, the amount OF so-caled relief
that the United States at this moment
is extending to Europe is far from suf-
fciently realized"
Permit me to make notes on the
first thing: The Importance OF the
| debts"
Very we'll" said the Senator Il
will refer you to an authoritative source
The International Chamber of Com
| merce met here in Washington few
! months ago. 1t had a lot of big re-
! ports presented to it by joint commit
tees of Europeans and Americans
Among them was report on the trade
| relationships between Europe and the
United States. 1t dealt with payments
| by Europe to the United States and
payments by the United States to Eu-
! rope.
I'VE pay Europe for imported goods
| We pay Europe for American freight
| and American passengers carried on
European ships. We pay Europe large
! sums of cash in expenditures by Ameri-
can tourists in European countries We
pay Europe other large sums Of cash in
remittances to Europe by European i'm
migrants now resident III the United
States. We also pay Europe on Eu-
IuptdIl lIlNtSlIltllGS Al llle InllpC
States. And so on.
"ContrariWiSe of course Europe is
each year paying us Europe paws Us
for American goods imported into Eu-
rope. 1t pays us interest on American
private investments in Europe. 1t pays
us royalties on American films shown
in Europe. And so on.
Now note the conclusion of the
Committee of the International Cham
Der of Commerce on the Exchanges of
Goods and Services Between Europe and
Our Country. They say
Payments under the debt settle
ments represent only about 81, per
cent of the total estimated annual
payments due from Europe to the
United States.
The same committee calculated the
international world trade of the Eu-
ropean continent at $50 900 900 900 in
normal year. The debt settlements
are running at the rate now of along
about $3.50 100000 year. We have to
look at these things in their true pro-
portions
But. Senator. you are talking about
the European continent as a whole.
What about the individual cases of the
individual debtor gOvernments?"
We'll, take France. France owes us
for the year 1882 the total sum of $50
100000. The population Of France is
more than 40,000000 persons. Call it
40,000,000. That's SIPS for each of
them to pay We never have had any
slightest shred of proof from the
French government to the effect that
it couldn't be done"
However, Senator, the general Eu-
| ropean situation might constitute an
emergency and might indicate the de-
slrablhty OF American assistance"
That's my second point. We hear
| nowadays about relief We hear about
assistance. I am not very strong for
those words. but let's see what we've
done lately in financial way about
| Europe.
Last Summer our Federal Reserve
system extended credit OF SIPS ,0OO,-
OOO TO the Bank Of England and of
$4,000, 900 to the Central Bank of Ger
many. That's total of $3.50 ,0OO,0 900.
Almost simultaneously our private
bankers lent $200,000,000 to the treas
ury OF the British government. That
brings the total to $3.50 100000.
Our private bankers are addition
any permitting German institutions and
British institutions to retain some
$500 100000 of overdue short-term
credits. That brings the total to $780,
900 10000
Then the United States Govern
ment TINS year is postponing the pay
menus OF the European governmental
debts to the United States Government
ana thus granting to those governments
me use at this time of some $780,
ooo 'OoO. That brings the total to ST.
200,0000O0
X X
But further, We should include the
ceot payments which would have been
que II we had not reduced the Euro
pean governmental debts to us in the
course OF making the debt settlements.
Inc reduction has been calculated by
aLnost al responsible economists at ap-
nrnylmntalv