Evening star., 1932-11-29
Harrison ATTACKS
/ DEBT BOARD IDEA
Forum Speaker Describes
Proposal as Invitation
for Negotiations.

Opposition to American representa-
ton on World Debt Commission wa
expressed by Senator Pat Harrison
Democrat, of Mississippi in talk las
night in the National Radio Forum
arranged by The Star and broadcas
over a coast-to-coast network of tn
National Broadcasting Co.
The President" he said, "has urget
the creation Of World Debt Commits
sion, manned In part by our repre-
sentatives on the World Disarmament
Conference and the World Economi
Conference. He thinks this is neces
sary, because Congress has declared it
policy against cancellation or reduction
of the debts, which, he intimates, de-
prives the Executive of power to trea
with the debtors. 1t is absolutely incon-
sistent with any idea of treating with
each debt and debtor separately and on
the merits of its individual case
Opposes Joint Consideration.
He vigorously opposed any joint con-
sideration of war debts with debtor
nations. declaring above all we should
avoid any joint negotiation and deal
throughout with each nation separately
on the merits of its particular case
without regard to other cases"
He added:
There is no law of Congress which
could, or does, or attempts to prevent
the executive branch of the Govern
ment from hearing anything debtor
may have to say. and If the President
deems anything SO said worthy of con-
sideration of Congress he can submit il
to Congress. The appointment. by us
of Debt Commission is like appoint
ing an Ambassador to the debtors II
| is gesture inviting them to come tc
us and negotiate on their debts, and ii
such action Immediately follows a re-
quest for reduction there is the strongest
kind of implication that the sole pur-
pose of the commission Is to work out
some sort Of reduction. There is nc
obligation, legal, ethical or moral, for
this Nation to engage in such move
| ments. The debtor should come to the
creditor with requests for consideration
and not the other way around.
Declares Board Not Justified.
THE purpose of our State Depart
ment is to hear and discuss interna-
tional affairs. 1t stands there ready
and efficient, and there Is no possible
Justification for appointing any kind of
commission unless we are harboring a
purpose to reduce or cancel these debts,
and both parties deny such purpose"
Opening his address, Senator Harri-
son expressed the opinion that the
American people will not stand for be-
ing saddled with the burden of debts
they did not contract
Text Of Address.
Senator Harrison's address follows:
In the last election the American
NlrN a,, tn$x
their attitude against any cancellation
Of the foreign debt. At the outset, per
NIT me to say that we sympathize with
our neighbors and have been ready and
generous in doing our fair share to aid,
but cancellation, modification or un-
necessary postponement are all pro-
posals to transfer tax burdens from
foreign shoulders to the backs Of our
own people.
Let me analyze some Of the reasons
assigned for postponement. modification
or cancellation, because, in my opinion,
too little has been said in behalf of the
American side of the case.
At the Peace Conference the position
of the allies was that Germany could
pay enormous sums, ranging up to
S120, ,000, ,000,0 900. The estimates upon
which the Lausanne agreement was
bdoGA WEAS t21db GIG NOQAo pay O1lly
$714,000,0 900. It Is not our purpose to
criticize the Lausanne agreement in
general, yet when it Is advanced as a
reason for forgiving war debts, we have
q right to question the action of the
allies in rushing from one such extreme
to another.
Supported Moratorium.
When the Hoover moratorium was
under consideration supported it
with the understanding that it would
give a year of grace, during which
European nations were to put their own
houses in order. A critical time then
existed in Germany, and the morato-
rum promptly justified itself by Great
ing a condition OF relative calm, but
and the only fruit that 1t has yielded
is this claim to transfer the entire bur-
den of the intergovernmental debts to
our people.
In the event of complete cancella-
ton the total remaining debts of the
United States, Great Britain, France
and Italy would be about $68, 200 ,000, 600.
Deducting the total pre-war debt to get
some idea of the remaining war heri-
tage, we would have $54, 900, 900 900, di-
vided among the nations as follows
Germany would escape with possibly
per cent of the remaining burden Of
the war. France per cent. italy per
cent, the United States 80 per cent and
Great Britain so per cent. When we
consider the relative economic condi-
tions Of these countries, the result Is
fantastic. Our generation has some re-
sponsibility for the future. These bur-
dens will remain. Germany, free from
debt, will be a principal competitor in
| world markets, and Italy and France
will have to be reckoned with Our
Government has duty to see that our
oncoming youth shall not be slaves in
an economic galley, and that is what
they may be if we assume such dispro-
| portionate burdens.
Used to Release Collateral.
The impression is frequently left that
/ our advances to our associates in the
] war were spent in this country, to our
great profit. While definite figures are
not available, 1t is probable that not
less than $2,000,000 900 was used by
them to pay of pre-existing debts
which they had borrowed on collateral
They thus released their collateral by
means Of this unsecured loan by our
Government.
i tilUIlS OLtlCl UoCo Va tluS ulOllcy Will
be found exchange and cotton pur-
chases," 1854, ,783. .000. Some of this
was money used artifcially to stabilize
allied exchanges and to make our pur-
chases abroad far more expensive than
they would otherwise have been. Nearly
$4,000, 100000 was used to purchase
food. which these governments sold te
their own people, thus reimbursine
themselves and possibly making profit
Indeed, Of total of nearly $4,000, ,000,.
900 loaned only about $2,443, ,000, ,00(
was used by these governments to pur-
chase munitions. Finally, this argument
entirely overlooks the fact that we spent
approximately $500, 900, 900 in the
allied countries and paid every cent oi
it. If we Offset that sum, on which WI
have been paying interest for IA years
the debts would have different aspect
Some advocates of cancellation have