The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-05-19
Seen
AS SOLUTION
OF WAR DEBT
Acceptance of Wine From
France Viewed as One
Safe Way to Pay.
NO BLOW AT LABOR
Benefit Seen to Debtor and
Creditor in Plan for
u. S. Control.
BY WILLIAM PHILIP SIMMS
Scripps-Howard FOREIGN Editor

WASHINGTON, May 19.-Adop-
ton Of the Swedish or some sim
liar form Of federal liquor control,
as advocated by Senator David A.
Reed Rep., Pa, official figures re-
veal, would:
l. Make it possible for the United
States to collect in full the $22,-
900 100000 war debts owed by the
allies, and, at the same time -.
2. Wipe out, so far as the allies
are concerned, at least so per cent
Of the colossal sums they owe the
United States, without costing
American taxpayers a penny.
AS matters now stand, it is pretty
generally conceded. the war debts
never will be paid in full, and either
cancellation or default is becoming
increasingly likely.
Would Crush Racketeers
The above apparently contradic-
tory conclusion is explained in this
way: If the United States would
agree to accept payment in kind,
instead of cash, the allies might be
able to pay-especially il the
amounts are reduced materially.
But the United States will not
accept payments in kind. To do
so, it is argued, would flood the
American market with European
goods and play havoc with Ameri-
can industry and labor.
There are, however, certain Eu-
ropean commodities which would
not compete in any way whatso-
ever with American industry and
labor, namely wines and spirits.
Today the American underworld of
thugs, bribers, racketeers and kill
ers have monopoly on this trade.
If the American government
should take over control of this
business, as Sweden, Canada and
other nations have done, it not only
would crush the underworld by re-
moving its chief source of revenue,
but would add, according to esti-
mates, more than 81 200, 100000 a
year to its sadly depleted revenue.
Debt Could Be Covered
In 1913, the last normal pre-pro-
hibition year, there we're man
ufactured in the United States 49,
100000 tax gallons Of whisky.
brandy, rum, and gin alone. An
additional $4,000, 900 worth of wines
and spirits were imported.
At 81 a quart, these 115,000,0 900
gallons would net the United States
1920, 000,000 This, plus the $4,000
600 retail value Of imported stuff,
would total $4,000 worth of wines
and spirits annually.
But the allies owe the United
States, on the average, only about
S370,000,0 900 a year. Thus, by agree
ing to accept from them, on ac-
count, about one third of our nor
NAL yearly requirements of wines
and spirits, their war debt payments
amply would be taken care of.
1t is commended that the allies are
not in position to pay in full. Can
collation. in toto or in part, it is
said, already is in sight. BY agree
ing to credit the allies, however,
with the retail price in this country
of their wines and spirits-lesS
handling charges-it would be tan
tamount to at least a so FER cent
reduction, without affecting Amer
lean taxpayers.
France, to cite an example,
might be credited with 50 for a
bottle Of cognac, the sale price in
the United States. She actually
would be out less than 81, the price
paid. wholesale, to the French pro-
Queer.