Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-01-17
u. S. Counts on Financial
Adversely to Affect
Geneva Result.
DEFICIT OF TWO BILLION
FRANCS FACING FRANCE
Defeat at Polls for Party Advocat-
ing Reduction of Totals Seen
by Senator Harrison.
BY FREDERICK WILLIAM VILE.

1t can be stated on first hand author
ity that the United States Government
places its principal hope of disarma-
ment success at Geneva next month on
the grinding financial adversely which
confrontS every nation in Europe, prac-
tically without exception. Budget def
cts exist everywhere. Economic life in
all directions is bending under crushing
taxation Statesmen are at their wits
ends to discover new sources of revenue.
Even opulent France, which so far mas
felt the effects of worldwide depres-
sion less than any important country in
the world, is face to face with a treas
ury shortage of 2,000,0O0,00O francs.
1t is because of that situation that
the French are so reluctant to sur
render or postpone their reparation
dues from Germany. France is Europe's
principal military power. She largely
holds the key to the disarmament sit
uation. The hope, though not the
very confident expectation. of President
Hoover and his forthcoming spokesman
at Geneva is that financial necessities
may induce the French to ponder care
fully before refusing to consider arma-
ment reduction except in exchange for
political security guarantees In other
words, the Washington Government
trusts that before the Geneva confer
ence ends money will talk, and talk in
favor of substantial cuts in armament
expenditure.
Congress Leaders Sounded.
Periodically during the past few
weeks, as Geneva approached, the sug-
gestion has been put forward in this
country that the United States might
be inclined to consider war-debt re-
vision-either reduction or cancella-
ton, or possibly both-if Europe agreed
to sweeping reductions of ornaments.
This writer, on the eve of leaving for
the Geneva Conference, has sounded
congressional leaders of both parties on
this score. They have written their
views. There is complete unanimity
Of opinion among Republican and Dem
ocratic Representatives and Senators
alike that even if European govern
mentS consented to cut armament eX-
penditure, there is virtually no proba-
bility whatever that the American Con-
gress in return would consent to any
further revision of the billions which
are due the American Treasury and
taxpayers
The following are characteristic re-
plies.
Senator Smoot, Republican, of Utah,
chairman Of the Senate Committee on
Finance:
THE extreme liberality of the United
States toward the nations which be-
came its debtors as result Of the
World War has, in my opinion, caused
a good deal more criticism than ap-
proval. From the large number of
communications I am now receiving,
the majority of them are opposed alb
solutely to cancellation. I was men,
Der Of the commission which made the
settlement of the war debts and Sc
cured favorable action on the same in
the Senate, although there was bitter
opposition by certain Senators on the
ground that the settlements were alto
gether too liberal"
No Sentiment in Senate.
Senator Harrison, Democrat, of Mis-
sissippi, ranking minority member OF
the Senate Committee on Finance:
AT this time I do not believe that
this Government will consider the
question of reduction of European war
debts. There is no sentiment for 1t
in the Senate and in my opinion there
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