Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-18
The Moratorium and After.

Financiers believe in taking time py
the forelock 1t is in the. natural course
Of events that they should already,
many months before its expiration date,
be considering what is going to happen
when the Hoover year" comes to an
end on July /, 1882. There are cir
cumstantial reports that the President
has recently been urged by the Advisory
Council Of the Federal Reserve Board,
committee Of private bankers, to ex-
tend the German and intergoyernmental
moratorium. On White House authori-
ty it is asserted that Mr.. Hoover has
determined, for the present at least, to
make no new proposals along the lines
indicated. He is said to hold such &C
ton at this time to be premature and
not designed to accelerate European
recovery. The Presidents hesitation
appears to be based primarily on the
conviction that further economic ar
rangements must be preceded by po-
litical Establishments, especially in the
relations between France and Germany.
Before the League Of Nations AS
sembly at Geneva last week, German
Foreign Minister Curtius blurted out
that there would be no resumption OF
reparation payments next year. He
argued from the premise that the
Reich's creditors, having given her q
twelve months breathing space, would
recognize the necessity of prolonging
It indefinitely. The wisdom of such a
prognostication may be questioned, but
1t is almost inescapable that world
statesmen will be called upon to con-
slider the international financial situa-
ton anew IN the light Of the Hoover
years. results.
Since the moratorium was proclaimed,
British finances have turned out to be
almost as precarious az those Of Ger
many were three months ago. National
treasures everywhere. including our
opulent own, have grave budget dim
culties to surmount Economic rehabili-
tation should.be definitely on the march
by Midsummer Of 1882, but whether It
will have advanced to point juStifying
the resumption Of pre-moratorium con-
ditions In Europe Is problem about
which IL would be extremely hazardous
to risk a guess.
American public sentiment on the
question is likely to crystalline during
the coming Winter when the country's
attention win be drawn to congress
sional debates over moratorium rati-
fication. President Hoover assured
himself In advance that the assent Of
House and Senate will not be with
held. In the course of the protracted
discussion bound to ensue on Capitol
Hill, opinion will manifest itself az to
the desirability, from the United
States standpoint, of permanent re-
visionary measures.
One thing is certain-the early and
persistently held theory In Washing
ton that reparations and war debts are
unrelated issues Is strapped. 1t went
to the refuse heap the day the
Hoover year" was launched. The
American people cannot long refrain
from making up their collective mind
! whether. If Germany's reparation
creditors determine to grant her a
more extended period of grace, Europe'a
creditor-the United States-will not
have to be correspondingly patient and
generous Some kind of new deal on
debts. either continued postponement
of payments or semi-cancellation by
revision downwards, can safely be put
down as inevitable,