The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-11-12

Foreign debt negotiations for reduction of pay
ments to the Unietd States not alarm citizens
looking for business recovery A debt settlement
can be used if the politicians are wise to improve
business conditions at home and abroad by stimu-
ating foreign trade and by reducing armament bur-
dens on taxpayers
The difficulty is that the politicians of both parties
have been dishonest about the debt situation that
some people will be shocked now with the discovery
that the small foreign debtors are defaulting and
that some of the larger European nations asking
for a further moratorium and reduction.
These revelations" coupled with the fact that
President Hoover is Fastening back to Washington
to deal with the British and French debt notes
apt to give an altogether false impression of some
new financial emergency.
There is nothing new about it. II has been fore
and discounted for several years by responsible
of1cals-even though they have not taken the public
into their confidence
Briefly the facts are these The debts can not
be paid in full international payments must be made
in gold goods or services-and of these methods
is practicable in this instance.
Our gold surplus and foreign gold shortage already
is a cause of world maladjustment and depression.
The foreign nations can not afford to accept our
services to the extent of the debts. And payment
in foreign goods is made impossible by high
tariff wall.
This situation was recognized ofacially-though
not in words-by the President in his moratorium
a year and half ago. The moratorium of
was only stop-gap to be followed by a permanent
settlement.
But neither the administration nor the Demo-
Gratis in congress had the courage to tell the Amer
lean people the truth-that we already had Cancelled
the debts from 25 to rs cents the dollar and would
have to cancel them much more.
Under this conspiracy of cowardce, the whole
question was hushed for year. until after election
Even the foreign governments obligingly kept mum
until after the election in which both Republicans and
Democrats solemnly dsavowed cancellation and left
the impression that the debts would be paid.
Now that the campaign hokus-pocus is ended, and
the foreign governments belatedly have blurted out
the truth about debt revision it is to be hoped that
the American politicians will get around soon to han
ding this matter intelligently
Specifically, it is necessary to accept the fact that
the debts are not going to be pad-whether like
it or not The eventual question is whether we shall
force the debtors to default whether shall enter
into some kind of agreement with them.
While the American people properly are opposed to
unconditional cancellation reduction-whch merely
would liberate European funds for armament
increases happened after the last debt reduction
there is no intelligent public opinion here opposed to
conditional cancellation or reduction.
The Borah plan to trade debt for armament reduc-
tons and the Smith plan to swap debt payments for
foreign trade have been well received by the public
Authority here rests with congress. Since the new
administration and congress are to be Democratic the
outgoing administration must consult President
Elect Roosevelt in any event.
But the Democrats also have control of the lame
duck house and actual virtual control of the lame
duck senate meeting next MONTH the Hoover Roose-
welt conferences on debts should take place immedi-
atey. Debt payments are due Dec IS
No settlement, not valid negotiations with
foreign governments are possible without immediate
Hoover Roosevelt corporation this issue, which
should be far above partisan politics