Evening star., 1932-06-19
The Extended Moratorium.

With speed and decision not char
acteristic of European conferences. the
Lausanne conference on reparations
has extended the Hoover moratorium
for the duration of It's deliberations.
That is, of course, a ysrys eexible ar
rangement, for no one knows how long
the statesmen of Europe and Japan
will have their heads together. But
the action taken meets an emergency
which is just around the corner and
is therefore of immediate and practical
effect Its main purpose is to prolong
the due date of thirty million dollars
payable by Germany in July and eleven
or twelve million of interallied obliga-
ticns also due next month, and to that
extent give Europe another breathing
spell
The declaration by which this period
OF grace is established was signed by
Great Britain, France, Italy, Belgium
and Japan within twenty-four hours
after the conference convened. 1t is
e,ouuently silent with regard to the
United States, although Germanys
creditors, being Americas debtors, are
concerned in the highest degree with
the attitude of this Government toward
q worldwide wiping out of intergov-
ernmental debts resultant from the war.
This, apparently, Is not Lausannes
objective for the moment. Its instant
-aol 10 0f Eh1rOpeaN
conditions" 1t is firmly convinced
that these problems require a final and
definite solution, and that it must be
pursued henceforward without delay or
interruption, with a view to its real
ization in the framework of a general
settlement
That sooner or later Europe expects
the United States, voluntarily or at her
invitation, to enter into the frame
work of a general settlement" is not
disguised anywhere in the old world
Lausanne itself goes as far as 1t feels
1t is safe to go at this juncture, when
the moratorium extension agreement
refers to 'the increasing severity OF
the economic and financial perils which
overhang the world"
The implication is only thinly veiled
that Europe believes Americas own in
terest will drive the United States into
wide debt concessions.
The conference buckles down to work
on the first anniversary of the Hoover
moratorium That project. hailed last
Summer with jubilation and high hope
throughout the globe, was envisioned as
indication that America had at length
broken with its previous policy of look
ing upon war debts and German repara-
tions as unrelated issues. President
Hoover interlocked them. Europe be-
lieved then that they would never again
to put asunder, and so believes now. She
considers that debts and reparations
were married in washington a year
ago and she is opposed to divorce.
Lausanne may not 60 on formal record
against divorce proceedings, but
Europe's views on that score are well
known.
United States do not have squarely to
meet the debt issue until next Decem-
ber, when payments from our creditors
fall due for the first time after expira-
ton of the Hoover year" on July l.
During the intervening six months the
presidential election, with its multi
tudinous angles. will engross the
countrys attention. But eventually, if
not In the meantime, America will be
squarely up against the debts problem.
Such mental energy as statesmen can
spare from more urgent preoccupations
can we'll be devoted to formulation Of
}the policy that will finally have to be
adopted. The day of decision cannot
be eternally postponed. Meantime
Americans rejoice at the hammer and
tongs manner, of which Lausanne
is a token, in which Europe is proceed
ing to put its economic house in order.
The more tangible progress she can
achieve in self-help, particularly along
the line leading to reduction of arma-
ments through sane political settle
ments, the more hopeful may Europe
be that American public opinion will
incline toward pulling an oar in the
international boat, that it may the
sooner reach placid waters.