The Bismarck tribune., 1931-12-24
GERMANY UNABLE TO
PAY EVEN AT END OF
YEARS MORATORIUM
War Debt Situation Is Clouded
BY Report Of Committee
at Basel
WORLD CREDIT IN BALANCE
Washington Awaits Next Step,
Which Appears Up to Ma
tions Of Europe

Washington, Dec. 24.-(PeDoubt
blanketed Thursday the whole future
Of the war debts due the United
States from her former allies, but
probability of stiff downward revision
became emphatic.
The Basel report Of Wednesday was
clear enough In declaring resumption
Of German reparations payments
could not be looked for at the end
of. the present one-year debt holiday.
In the eyes of Europe at least, the re-
parations are the key to the whole
structure Of the world war burden.
That, as a consequence, the obliga-
tionS due this country will not be
paid at the moratorium's expiration
was more. than likely. It appeared
in the case Of many nations nearly
certain.
T But the official attitude in WASH
ington, reflected despite determined
refusal Of comment on this report
from the Young plan committee,
showed clear conviction congress has
made 1t impossible for President
Hoover to take any further step On
debts.
Controlling Importance
The congressional declaration, in
corporated in the moratorium resolu-
ton so as to register unalterable op-
position to further revision. thus ac-
quired a controlling importance.
II, as the result the United States
can do nothing to justify non-pay-
ment. there is ample possibility of
default by several at least Of debtor
nations. a critical blow to world
credit structure. Some, who have the
privilege under existing agreements,
doubtless will invoke the right to
withhold certain payments Of prin-
cipal and interest. amounting to
about $88.000.0 900 of the $250O00, 900
d,'e in the next year.
From the Washington angle It was
clear the next step in the situation Is
up to the European nations. Some
expectation has been shown Of gen.
eral conference on reparationS. pos
sibly on war debts also. but prospect
Of American participation was dim.
No Official Notice
Suggestions advanced the debts to
the United States be paid in terri
tory have met with no official notice
All this prospect Of uncertainty
precipitated itself just as congress had
finished with the mora atorium and the
president had given 1t the final touch
OF legality by signing the resolution
OF approval He commented the debt
holiday had "averted catastrophe.
the effects of which would have
reached to the United States and
would have caused the American peo-
pie loss many times the amount in
volved."
In the light OF the Basel report Sen
ator Hiram johnson Of California.
chief of the moratorium opponents
commented that ratification Of the
latter was q "pyrrhic victory"
Young Plan Near End
At Basel, bankers regarded the re-
port as the beginning of the end of
the Young plan which they believe to
have been rendered imperative IN
some degree by the economic events
Of the years since 1t was adopted.
Germany called it satisfactory and
better than had been expected but
Chancellor Bruening said it fell short
Of being q broad scale solution Of the
international debt problem.
In France, those who commented.
described the report as q valuable
source Of information and intimated
that adjustments might be made II a
study Of the full text indicated that
Germany cannot cover the uncondi-
tional reparations payments.
London newspapers reported the
adoption of the committee findings
under big headlines but there was lit
tie editorial comment. Such as there
was indicated an agreement that the
report will make the work OF the
Forthcoming international debts con-
ference easier.
The same sentiment was expressed
at Geneva in League Of Nations quar-
ters.