Evening star., 1931-06-20

produce discord and confusion rather
than contribute to the economic stahil
ity and orderly betterment of world
prosperity"
The letter was sent to President Hib-
ben Of Princeton University after he
and other faculty members indorsed
q statement urging reconsideration and
revision of the debt settlements.
The Treasury Secretary asserted that
the advances to foreign countries were
beyond dispute loans and not contribu-
tionS to our allies in q common cause.
He said this Government had In effect
enabled its former allies TO borrow
money in the American investment mar
ket. The situation. he added, would
have been no different had the foreign
countries sold their own bonds in the
American market.
Paid Cash for Supplies.
I'VE purchased supplies and services
from France and the British Empire"
he wrote, by hundreds Of millions. They
had to be paid for in francs and In
pounds. We did not get those francs
and pounds on credit-we paid cash for
them, except possibly in few COM
pAEAtAVGiy Ik13JdklCC8.
In other words, We paid cash for
able US to make our joint contribution
to the common cause. Our associates
got the goods and services purchased In
this country necessary to enable them
to make that part of their joint con-
tribution on credit Here Is the funda-
mental reason which explains why We
ended the war with every one owing us
and our owing no one.
I'VE are now urged to cancel these
debts, because IL is alleged that they
were incurred in q common cause, but
neither abroad nor in this country has
1t been suggested that II this is to be
done we are to be reimbursed the dol
lars actually expended by US in France
and Great Britain"
After several discussions yesterday,
the President issued this statement:
Since my return from the Central
West yesterday, I have conferred with
those leaders of both political parties
who are present in Washington with
respect to certain steps which we
might take to assist in economic re-
covery, both hare and abroad.
These conversations have been par
ticularly directed to strengthening the
situation In Germany. No definite
pI0Al6 Ok CJAlSluoAOA1o AAoNC yCb OCCh -
rived ut, but the response which have
met from the leaders Of both parties
Is most gratifying. Any statement of
plan or method is wholly speculative
and Is not warranted by the facts"
Despite that warning there was, Of
course, speculation.
0ermany's recent cry that the bur-
den of reparations payments was in
tolerable already had revived discus
sionS Of the fact that under the Young
plan She might suspend the major por-
ton of reparations for two years.
Provisions for o similar suspension
were made in the war debt settlements
negotiated with the United States.
That Germany wants q change in
the situation has been indicated by de-
Velopments following her appeal for
revision of the Young plan, which calls
for payments this year OF more than
3426, 900 900.
German government leaders have
conferred with Prime Minister Mac
Donald and Foreign Secretary Hender-
son In England, and the English states
men are going to Berlin soon for
further discussions. :.
Mellon Trip Held Important.
Interest In war debts and repara-
tIO2lo llbNC pCSAl .AlCA8A1tSAACOp wv, ~ eA.S
visit of Secretary of the Treasury Mel
lon to England and the announcement
that Secretary of State StimSon also
was going abroad.
ALTHOUGH Mellon denied that his trip
had oflcial significance, much impor-
tance has been attached abroad to his
presence. This has not been lesSened
by his conferences with Macdonald,
Henderson and Montagu Norman, gov
ernor of the Bank Of England.
Among those who participated In the
White House conferences yesterday were
Senators Glass of Virginia, Walsh OF
Montana and King Of Utah, Democrats,
and Reed Of Pennsylvania and Bingham
of Connecticut, Republicans.
Glass was Wilson's Treasury Secretary
and was q factor in debt settlements.
Reed was on the last Senate Finance
Committee.
The President talked also with Julius
Klein, Assistant Commerce Secretary.
~~ENy