The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-07-09
U. S. CAN Give
FAREWELL KISS
TO WAR LOANS
Hopes of Collection Fade
Almost to Nothing, With
European Accord.
By WILLIAM PHILIP SIMMS
SerIaps-Howard FOREIGN Editor

WASHINGTON, July s.-The
agreement between Germany and
the former allies knocks into
cooked hat all hope of ever collect
ing the 1000, 900, 900 in war debts
which the allies owe the United
States.
Radical scaling down or cancella-
ton now will have to be considered
by this country. The alternative is
either default or reputation. Re-
adjustment hardly can be delayed
longer than next fall or winter.
The very situation which this
country ardently wished to avoid
appears to have been engineered at
Lausanne. Despite Secretary of
State Stimon's plain warning that
the formation OF anything like a
united 'front.' by the debtor nations
would be regarded with displeasure
on this side of the water, the whole
reparations and war debts problem
appears to have been dumped on
Uncle Sans doorstep by a unani-
nous Europe.
Ratification Up to u. S.
A sweeping agreement between
Germany and the allies has been
reached with regard to war debts,
reparations and war guilt. But
final ratification depends upon the
United States.
That is to say, the United States
either must reduce vastly, or cancel
outright, the remaining war debts
or else bear the blame before q.
watching world for blocking the
long awaited and vitality important
European accord and recovery.
While Washington halls the re-
ported removal of the war guilt
issue from Franco German relations
particularly as big step forward,
it distinctly does not relish being
thrust into the limelight as the ma
ton upon which the whole Euroe
pean settlement depends.
Its position is this:
l. There is no connection be.
tween war debts and reparations.
2. Capacity to pay must remain
the American fomula for war debt
adjustments.
3. Having been concluded sepa-
rately, the existing debt agreements
can be revised only by individual
negotiations with the several ma
tons.
Congress Opposes Reduction
The present congress repeatedly
has shown itself distinctly hostile
to reduction, and both big parties
have expressed themselves against
cancellation.
Proponents of cancellation point
out that when President Hoover an
nounced the moratorium last year.
values on the New York Stock Ex-
change jumped $1O,OOO,OOOOOO in
two weeks.
The paper value of American
wealth, it is observed, rose thirty
~ iorty Dillon dollars. Cancellation.
therefore, would pay for itself by
helping to bring. back prosperity.
The Hoover administration has
dropped more than one hint that
something might be done about cut..
ting down the debts, provided Europe
showed some inclination to do the
same with ornaments.
Keep On Buying Arms
The American people can not be
asked to forgive the war debts. It is
argued, if Europe continues to
spend several times that>amount on
increasing weapons of war. If
Europeans can buy arms wholesale
for a new war, they can pay what
they owe on the last
President Hoover's record proposal
Tor a worldwide, one-third reduce
ton of ornaments fell on pretty
deaf ears, so far as the great powers
were concerned.
The fact that these were the very
nations which now owe this country
most on war debts hardly can fail
to influence his attitude.