Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-28
BELGIAN DILEMMA
ARISES OVER DEBT
Prospect of Deficit and Fear
for Future Are Opposed
by Rally on Bourse.
By Gable to The Star.

By Gable to The Star.
BRUSSELS, June 27.--No other colln-
try has been thrown into greater per-
plexity and confusion than Belgium by
President Hooyerg offer concerning
debts and PREPARATIONS. Instead of rails
ing enthusiasm and hopes for better
face to face with q heavy deficit and
awakened among the public fear for the
future Day after day has this fear
been aired in the columns of the press
and on the tribune of the Senate, while
In o long series Of laborious conferences
ministers of foreign affairs and OF
finances worked on the draft Of q reply
to be sent to Washington.
The situation of Belgium appeared
extremely difficult immediately upon re-
ceipt Of the full text Of Hooveris state
ment. Even at the first glance at the
table of the years payments and re-
ceipts it could be seen that the latter
exceeded the former by more than 600.-
000, 900 Belgian francs. Thus the Amer
lean offer meant for Belgium q net loss,
while the gain coming from the even
tual rally Of business seemed a mere
possibility looming on the distant
horizon.
BudAet Balance Periled.
A deeper Sd udy of the Belgian posi-
ton revealed Ats inferiority even better.
While HymanA, the minister of foreign
affairs, proved ITO his colleagues it would
be impossible fOl' Belgium to remain iso-
lated in such anVimportant international
question, Baron Houtart minister of
finances, retorted\ that the pure accept
ance Of Hoover's suggestion would leave
III lr IN hall be
budget.
Last years budget" he said, shows
already a gap of almost 1000 900 900
francs. 1t is only possible to fill 1t by
voting new taxations aud raising the in
ternal loans. But during the coming
Fall and Winter the irik ONE from taxes
Is bound to be insufficient again and the
lack Of receipts from German repara-
tons could not possibly fbe met by the
higher taxes"
The situation was so intricate and
of such far-reaching effect that the
King himself expressed a d sire to con-
fer with his ministers befo re any de-
cision is taken. And, while the men,
bers Of the government put their heads
together to find a satisfactory solution
their position was rendered nA1re deli
cate by the harsh criticism Of the
American proposal made IN the Senate
and the press. Speaking from the Fri
bune, the Catholic Senator SeGerS de-
clared IT would help Germany, butt was
dangerous for Belgium.
German Burden HaIved.
I'VE must ask serious political guar
antees in exchange for our sacrifice, y
he said. Before the war Germany
could spare per cent of her budget
for military preparation, while the rep
arationS payments only require 2 peS
cent Thus this is not an overwhelnF-
ing burden, while Belgium may suffer
more than any one else from any cut
in reparationS."
Even stronger arguments against
Hoover's suggestion were put forward
by the majority of Belgian papers.
Germany can be helped only If Amer
lea and the allies impose upon her a
policy Of peace" wrote LIE Soir. Be
cause If she gets support and does not
abandon her -mindednesS, we will
run the risk Of seeing soon at our from
tiers ATLAS horse"
Only one factor spoke in Belgium in
favor Of Washington's move-a sudden
rally Of prices on the Brussels Bourse
After the United States, this country
certainly has been the heaviest gam
bier on the stock exchange during the
blessed time Of boom. The fortunes
OF great capitalists and the savings of
small employees have been invested in
stocks and wiped out by the collapse
Of the shares. The hope to see bISi-
ness pick up and prices rise on the
Bourse are an important stinulant for
the Belgian people and may outweigh
political fears.