The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-03-18
EUROPE WILL
RENEW DRIVE
ON WAR DEBTS
Great Powers Expected to
Unite Against Payment
to America.
U. S. IN BAD POSITION
Campaign Will Be Launched
as Mellon Takes Over
Berth in London.
BY WILLIAM PHILIP SIMMS
scripps-Howard Foreign Editor


WASHINGTON, March 18-Eu-
ropes spring offensive to wipe out
or materially reduce the war debts
is in preparation. The opening
baTage will begin about the time
former Secretary Of the Treasury
Andrew Mellon, now ambassador to
Great Britain, arrives at his post in
April.
Britain, France, Germany and
Italy, it is reported, are nearer &C
cord on this issue than they ever
have been, their desire being to pre-
sent united front the next time the
matter comes up with the United
States.
The world depression is regarded
in Europe as favoring cancellation,
or maximum of reduction, despite
the urgent need in the United
States for funds with which to bal
ance the budget.
The whole problem admittedly is
based upon capacity to pay, and Eu-
rope manifestly is less able to pay
now than at any time since the
World war or than she probably
hopes to be in the future.
Want Agreement First
Offlcially and unoff1cially, Wash
ington has dropped the hint that
little could be expected from this
country until Germany, Britain,
France and the rest had settled
reparationS among themselves.
once they did that, however, it has
been intimated, the United States
would treat leniently with her deb
tors in accordance with actual con-
ditions.
To make the allies pay more than
they are able to pay, Secretary
Mellon declared, would not be fair
to them. For them to pay less than
they are able to pay would not be
fair to the United States.
Accordingly, Germany and her
creditors today are seeking agree
90 bAACJ 4AONCL WCAC OOh6OO OC~
fore. In June they will meet at
Lausanne, Switzerland, for the
avowed purpose of effecting "a
lasting settlement"
This, they declare, is vital ito
solve the economic and financial
difficulties which are responsible
for, and may prolong, the present
world crisis"
Powerful Alliance Faced
If Germany, France and England,
particularly, can agree, the rest will
go along with them. And if Europe
puts up a united front, the United
States would come pretty near hav-
ing to accept whatever amount on
the dollar Europe felt like paying.
Their combined power for propa-
ganda, this country has reason TO
know, is Stupendous. Failure to
play along with them would be the
signal for blaming the continuation
of the world depression on Uncle
Shylock."
France is the only one of the
allies opposed to cancellation. That
is because she stands to receive
more than so per cent of German
PREPARATIONS, or considerably more
than she is called on to pay Britain
and the United States.
Nevertheless, it is said, if Ger
many will pay her this difference
on account of restoration of her de-
wasted regionS-She would join the
cancellationists readily enough.
Great Britain, from the start, has
organized and led the cancellation
movement. Like France, her reasons
are quite practical. She stands to
collect just shade more than she
has contracted to pay, the one about
balancing the other.
Cancellation, on the other hand,
would release capital for business
purposes in which she would share
largely.
Britain Is Busy
British officials, therefore, are
rushing from London to Berlin,
Berlin to Paris, and from Paris back
to London in a round of confer
ences looking toward an agreement.
Sir John Simon, foreign minister,
and Premier Tardieu of France are
in constant communication and as
soon IS the German elections are
over, on April 10, the three powers
will get down to business.
The Hoover moratorium on inter-
governmental debts expires in July.
This is another reason why haste is
essential.
Mellon, secretary of the treasury
when the war debts were funded, as
American ambassador to London,
now can not fail to be the center of
the battle about to be renewed.