The Washington times., 1931-06-25
SOLE BENEFIT
. To BANKERS,
, HE HOLDS
Cites League Prophecy, Truce
Is Keynote to Eventual Sus-
pension of All Payments

W - - DG-ASSuLLtIy LICG AuUCLILLo
trGtionS plan for q moratorium
on all international debts as tn,
"beginning of the cancellation O
the debts oDed the United
States" Senator Hiram w. John
son, Republican, OF California
issued the tollo1Ding Statement
here yesterday:
Generally speaking, am SYM
pathetic with moratoriums, in
ternational, national or indi-
vidual. How marvellous it would
be If our banks would say to our
own people who are in the red,
''We grant you a moratorium
and we do it. in the language OF
the President, 'As wise creditors
in our own interests and as good
neighbors.'"
I wonder if we could not with
beautiful language soft and
sweet, induce American finan-
ciers to take this attitude to-
ward Americans.
Stampede DepIOred
The American people are
asked Immediately to consent
to, and the Congress by wire, to
1egiSlate a moratorium for Eu-
rope from solemn agreements
settling Europe's debts to tioe
United States. Perhaps this
should be done; but Americans
are entitled to know exactly
the situation and the Congress
hardly fulfills its functions when
Stampeded without full knowl-
edge into a telegraphic Eyes"
What is proposed?
The President says THE
American Government proposes
the postponement during one
year of all payments on inter-
governmental debts, reparationS
and relief debts, both principal
and interest. OF COURSE NOT
INCLUDING OBLIGATIONS
OF GOVERNMENTS HELD BY
PRIVATE PARTIES"
Why, of course?
While we could not compel
great bankers holding obliga-
tions of Germany and other gov
ernments, to postpone their
principal, and refrain from col
lecting their high rates of in
tereSt, we might. in suppliant
fashion, suggest it.
OStenSibly the moratorium is
to aid Germany, but the bene-
ficiaries who profit most will
be the American financiers
, with more than a billion dol
lars at stake.
means Cancellation"
A moratorium for one year,
Just a brief period, is planned.
In reality. it is the beginning
of the cancellation of the debts
due to the United States from
European nations, debts due
not alone for moneys advanced
during the war but for moneys
loaned European nations after
the war for rehabilitation.
Anyone with the slightest
knowledge of the propaganda
of the last year for the cancella-
ton of foreign debts, knows
this moratorium means cancel
lation. When the Presidents
offer was caoled to Europe, the
Geneva press, the home of the
League of Nations, predicted
the payment of the debts, once
suspended, probably never
would be resumed. This, indeed,
Is the accepted foreign view.
without Facts
I repeat, perhaps this mora
torium should be granted, while
we stand helpless TO aid our
own.
We are absolutely without the
facts upon which 70 base a con-
sidered judgments The mora
torium is shouted W the inter.
national press and all the yes"
men of the country as the
greatest event since the world
war, Of "stupendouS" and "un-
paralleled" character.
Every InternationaIist is en-
gagged in bludgeoning the rest
of our people into acquieScence.
This country is still a republic
governed presumably by the rep
resentativeS of the people; and
II confronting us now is
question of unparalleled i'm
portance" the most stipend
Gus event since the world war"
the representatives of the peo-
pies should be called together
to act upon it. with full knowl-
edge of every detail concern
ing it; and beyond that, the
American people are entitled
to know every fact and circum-
stance which induced the action
OF the Administration.
An Added Burden
Here's a policy which places
an added burden in these
terrible times of two hundred
millions or more upon an al
ready overburdened American
people; and which may pos
sibly. indeed. probably. deprive
them in the future of many
billions of dollars to which they
are justly entitled.
Such a policy, after long prep
aration. is sprung upon them
overnight. 1t is sought to
sweep them off their feet to
immediate acquieScence and
their representatives are ex-
pected from the far corners of
the country at once to agree.
Let the Congress meet and
turn on the light.