The Washington times., 1931-07-23
EDITORIAL SAYS
MONEY NOT
FOR WAR
Allies Used 1t for Rebuilding
Territories; Campaign Is
Based on False Premise

born during the tD1r as the Stars
and Stripes Whtle American
soldiers Were fighting in The
trenches of France and still going
ouer the publishing top, protests
against a persistent but false
propaganda for the cancellation
OF foreign debts to the United
States.
The present editor of the NG
tionGl Tribune, w. L. MGttocES
In an editorial, reminds that these
debts really are not tDGr debts,
that the money 1lot0 o1Ded this
country by the allied nations 1UGt
for the rehabilitation of thei,
tDdr-torn territories. rather than
for guns, ammunition, and Other
implements of warfare. Asserting
that "tOe haze cancelled enough
already" the editorial reads:
The persistent propaganda fol
cancellation of the foreign debts
owed to the United States is based
on a false premise.
These debts are not actually
war debts. The money loaned by
our Government to the Allies, for
the purpose of successfully carry
ing on the war was practically
marked off the books, wnen tie
debt settlements we're made. Nc!
one nation is now obliged to re
pay to the United States Treas
ury anywhere near the amount
originally borrowed, and fot
which legal promises-to-pay were
given. The rate of interest agreed
upon at the time the Allies were
in dire need of financial assist
ance, for the purchase of am
munition, and other material of
war, has been greatly reduced
and all of the countries which
owe US money. have been given
50 years in which to pay up.
Called Uncle ShyIOck
Despite these lenient terms ot
settlement-we could have in
sisted upon the last penny, if we
had been so inclined-the United
States is referred to as U1.cle
Shylock all over Europe. Such
propaganda is spread by the
European politicians, and is be
neved by those people, who are
not familiar with the facts.
In the United States, prrpa
ganda in favor of debt cancella
ton is sponsored by two groups
the international bankers ano
sentimentalists.
The first group has very def
mite motive for it's activity. The
international bankers Of this
country have floated large foreign
loans among American investors
on each occasion, Of course, tax
ing a big commission. Shoulc
the debts Of these European
countries to the United States
Government be wiped out, the
money loaned by private inves
tors would be a whole lot safer
and the field would be open fol
further loans. with the usua
brokers' commissions.
Hearts Rule Heads
AS for the sentimentalists-tC
q large extent they are simply
misled. Instead of facing the
facts. they let their hearts rule
their heads.
The money now owed ny Euro
pean governments to the United
States Treasury did not go to pay
for the war directly; that is, II
did not go for guns. ammunition
and other equipment. 1t vent tt
rebuild the countries after the
war.
Just as any concern has. to Dor
row funds to rebuild its factories
following a devastating lire, sc
Europe had to borrow to get back
on its feet after the greatest con
flict the world has ever seen
Whole towns had to be rebuilt
farming land again made tillabie
industry restored to peace-tInt
manufacturing. 1t was. titanll
undertaking and billions IF dol
lars were needed.
Lent without Question
Fortunately. the United State!
was in a position to provide the
necessary money and it was lent
without any question. Credit
flowed from washington to the
various European capitals like tht
rush of Niagara Falls. The Whole
idea was to get the world oacl
to a normal economic condition.
After a time it was necessary
for a showdown. We had tht
promises of Europe to oay, but
there had been no real formal ar
rangement for settlement. Tht
first formal settlement was made
with Great Britain, followed by
other countries. The last TO set
tie was France. In each Ease, bill
lions of dollars were marked of
and easy terms for payment o.
the remainder given.
Those who advocate debt can
collation.. particularly the senti
mentalists, seem to forget thai
every dime lent abroad by ou'
Government was borrowed anC
must be repaid. That means tnt
American taxpayers must max
UP for every dollar not paid 0acl
by Europe.
Came Too Late
Ignoring this phase Of th'
question for the moment, let III
consider what would happen
we did cancel our for sign debts
Any veteran who got abroad
before the second battle of th'
Marne in July. 1918, will remem
fMFs the talk heard IN all side