Evening star., 1932-04-28
Events Here and in Europe
Revive Discussion of Deb,

New interest has been added to the
American consideration OF the war
debts and German reparations. The
British postponement Of the subject in
making its budget, Senator Borah's
declaration on the relation of arma-
ments to debt cuts, and former Gov.
Smiths 20-year moratorium idea have
served to inspire discussion of the effect
of cancellation on the United States.
France, England and Italy cannot
simply refuse to pay and repudiate their
debts" declares the Newark Evening
News. holding that 1T would be volun-
tary bankruptcy, which would destroy
their own currencies." The Evening
News also observes that expert opin
ion ranges all the way from that
through the Smith plan for a 20-year
moratorium, with credits for purchases
from this country, to the Borah sug-
gestion that the debts could be cut If
the debtors first did away with their
heavier armaments, with reparatlons
and with the war guilt and other con-
troverSial clauses in the Versailles
treaty"
Cancellation, without a change in
the war spirit, would be futile, accord
ing to Mr. Borah," says the Davenport
Democrat, "and here is an instance in
which more than the usual number OF
people will agree with him" The Akron
Beacon Journal voices the opinion:
Senator Borah warns European gov
ernments not to come to America for
any further debt relief until they have
settled their own reparations, reduced
the billions they are blowing in every
year for the upkaep of armies and
navies. and revised the injustice OF the
Versailles treaty. While this stand VIII
probably bring little revenue to the
American treasury, 1t has the virtue OF
serving notice that If our taxpayers are
saddled with the debts. Europe must
bear the shame of their reputation.
The omission from budgets amounts to
just that"
There is wide technical difference
between ceaSing payments and cance;-
lstion," advises the Hartford Deny
Times. Cancellation requires the
initiative or consent Of the creditor.
There is no reason for haste abcut that.
II France and Great Britain, notwith-
standing the visible wealth OF France
and the surenesS of British fiscal sufti-
cheney in good times come to conelu-
sion that the oblig 1tions owed to the
United States are not binding. Senator
Glass has asked, What can America
do about it?' At least the United States
can express regret and amaZement and
refuse to connive in such an injustice
TO the American taxpayer. Our coun-
try will not attempt to collect the debts
by force of arms. 1t probably will not
exert economic pressure to influence its
debtors. II cannot lose sight Of the
fact thsA an early return OF better
times aoroad may establish new con-
dition for the debt problem. In any
case. it should not tear up and throw
out the window billions In notes which
were signed voluntarily by the great
powers abroad embodying a contract
which should be kept honorably, If not
to the letter"
In Congress and throughout the
population" thinks the South Bend
Tribune the purpose apparently is to
let Europe default rather then to sane
tion ofncially the transfer Of the World
War burden from European to American
shoulders" The Cleveland News holds
that adjustments do not come as the
result of debtor nations ignoring their
obligations" One concession, however
is seen by the Providence Journal. which
states 1T seems plain that the British
government expects definite read1ust-