Evening star., 1931-12-24
More Moratoria.


When President Hoover recently in
formed Congress that further tempo
rary readjuStmentS" in intergoven-
mental debts might be necessary, he
almost teXtually anticipated the Young
Plan Advisory Committee report at
Basel yesterday. This body of experts,
headed by an American banker, calls
for adjustment of all reparations and
other war debts Ito the troubled situa-
tion Of the world" Action must ensue
without delay If new disasters are to
be avoided" because adjustment is "the
only lasting step capable of establish
ing confidence, the very condition of
economic stability"
The experts recommendation is a
demand in effect, If not in words for
extension of the one-year moratorium
expiring July l, 1882 Basel con-
templates two-year extension. The
experts affirm unequivocally that Ger
many's finances will not permit her to
resume conditional reparations when
the Hoover year" terminates next
Summer. Between the lines of their
lugubrious findings, in which the
French committeeman concurred, it is
easy to divine that they hold uncon-
ditional reparations, with which the
Young plan forbids them to deal. as far
beyond the Reich's capacity to pay as
are conditional reparations
BY a striking coincidence the Basel
experts formulated their conclusions at
the moment President Hoover was
signing the act of Congress ratifying
the existing moratorium. The resolu-
ton does not specify opposition to its
extension. But 1t does breathe hostility
to further reduction or cancellation of
war debts. 1t Is also distinguished by
a conspicuous omission. 1t fails to ap-
prove President Hoover's recommenda-
ton to revive the World War Debt
Commission for the definite purpose of
considering further temporary read
justments."
The Basel experts assert that they
cannot refrain from drawing attention
'to the unprecedented gravity of the
crisis, the magnitude of which un-
doubtedly exceeds the relatively short
depression envisaged in the Young
plan, to meet which the measures of
safeguard therein were designed" Grave
as the German problem is, its ramif1-
cations extend far beyond the borders
"of Germany alone" The committee
but repeats what has become an inter-
national aphorism when it says that the
problem is world wide and without any
previous peace-time parallel.
Before the governments mainly con-
cerned assemble to weigh and presum-
ably to act upon the Basel report, the
people of the United States will do we'll
to indulge in some heart-searching. The
proposition will come home to this
country, sooner or later, even though
we are not directly interested in repa-
rations or the Young plan. France
has already served notice on Washing
ton that II there is to be any further
postponement or remission of German
reparations, such postponement or re-
mission will automatically have to
be passed on to governments which
are creditors of France. The Balfour
declaration of 1923 lays down as Brit
ish policy the principle of not exacting
from Britain's debtors any more than
she is required to pay her own credi-
tors. In all such affirmation and pro-
grams the name Of the United States
is principally in mind
Like it or not, Uncle Sam is face to
face with stern economic realities in
Europe and the certainty that their
repercussion will rebound upon him.
President Hoover, in a statement ac-
companying his signature of the mora
torium ratification law, says that in
saving Germany from collapse by one
years postponement of debt payments,
the American people have done some
thing greater than dollars and cents. -
Our action, Mr.. Hoover adds, has
contributed to maintain courage and
hope in the German nation, to give
opportunity for the other European
countries to work out their problems. u
Basel now flashes to the world an
admonition that if the blessings which
flowed from the Hoover year" are not
to be swept away, that period of grace
must be prolonged. Before long this
common sense people of ours will have
to decide whether enlightened self
interest or blind prejudice shall deter
mine Americas future course. If we
are wise in our day and generation, il
will be the voice of reason, speaking
in the accents of our own welfare
which will prevail.
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