The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-03-31
BY WILLIAM PHILIP SIMMS
seripps-How Foreign Editor

seripps-Howard Foreign Editor
WASHINGTON, March 31.-The
next ninety days will see crisis in
the twenty-two-billion dollar war
debt settlement between Europe and
the United States.
Revision Of existing agreements is
almost certain. This can take one
Of four forms: Reputation, cancel
lation, reduction, or an understand
ing to postpone present payments, in
whole or in part, leaving final re-
adjustment to await a better world
economic situation.
Meantime, Europe again has
started her propaganda mill, with
an eye to cancellation or a substan-
tial reduction. Now, in her opinion,
is an opportune time to press for
revision.
AS all the debt settlements we're
based on capacity to pay, and as the
hard-hit nations of Europe could,
beyond question, now make out a
case for minimum payments, if not
Tor cancellation, it is felt that this
is the time, to act.
Congress Fears Reused
Both congress and the admin
istration, therefore. are showing
nervousness. A report that former
Secretary of the Treasury Andrew
w. Mellon, now ambassador to
Britain. would reopen negotiations
as soon as he settles down in Lon
don, set the senate by the ears.
The state department hurriedly
isused a denial, and the debate on
the senate floor hardly had got 60
ing good before the White House,
through Senator David A. Reed
(Rep., Pa also branded the story
as false.
That congress, as a body, now is
hostile to further debt revision is
unmistakable. But that does not
necessarily mean revision will not
take place. Congress always has
insisted that Europe must pay "the
last red cent" but that did not pre-
vent letting Britain off for 80 cents
on the dollar, France for so, Italy
for &c, and so on.
When debt revision hobs up again,
as it almost certainly will in the
near future, congress likely will re-
peat. 1t will roar, but it will finish
by q further reduction on a revised
basis of capacity to pay.
Forecasts Reversal Of Stand
Said Senator Carter Glass, for
mer Secretary of the Treasury and
a realist on the subject: II very
readily can apprehend that circum-
stances hereafter may be such as
to induce congress absolutely to re-
verse its apparent attitude of to-
day"
Outright cancellation by this
country, however, now may be con-
sidered as out of the question, at
least under anything like existing
conditions.
There are three possible out
comes in connection with our for
eign debts" said Senator Howell of
Nebraska. First, payment of what
remains of these debts. Second, re-
duction in the amounts still due,
with further promises to pay. Third,
reputation by our debtors"
Washington takes with more than
grain of salt European propa-
ganda picturing poverty and inabil-
ity to pay, or that our demand for
gold, instead of goods, makes pay
ment impossible.
Both France and Great Britain,
two largest debtor nations-are in
themselves great creditor nations
with billions of foreign investments
held in their vaults" chided Sena-
tor Reed.
Transaction Is Simple
1T is a perfectly simple transac-
ton to accomplish that transfer of
value by shipment and sale of those
SeCuIllleS, OF SOIIlS VI Illelu. LII ID
not necessary to disrupt the ex-
change markets by shipment of
gold, or the balance Of trade by
shipment of goods"
If Mellon is carrying any war
debts message with him to Europe
at all, therefore, it is pretty much
agreed here, it has nothing to do
with cancellation.
More likely it would fit in with
Senator Howell's three point alter
native. That is to say, payment &C
cording to the existing agreement;
reduction according to present, and
probable future, capacity to pay;
or reputation.
Somebody has to pay this money
either the European taxpayer or
the Notwithstanding to the
Mellon formula. Hence Europe must
pay, insofar as she is able.
Any more generous revision Just
about would cause the dome to be
blown clear off this country's Cap
itol.