The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-01-19
Dishonest Debt Policies

Politics. the curse of the reparations-war debt is
sue from the beginning is making bad mat
ter worse According to the plan of the politicians,
the reparations conference at Lausanne next week
will do what every previous conference of its kind
has done since the war-that is, patch up some tenn
porary compromise agreement and then away
from the problem until it catches up with them again
in worse form. And America will not be represented
That method may be all very well for the politi-
Clans whose chief purpose in life to be to get
themselves reelected but it is disastrous for world
peace for world business and for the millions OF I'M
employed in al countries.
If it were not for politics here and abroad the
problem could be settled. For the facts fairly
simple. The allied governments in order to quiet
their war-weary peoples first promised to make Ger
many pay for the war; and wrote treaty to that
effect They dared not tell the British and French
people the truth that the victors we'll the van
uushed lost the war and that Germany could never
pay the whole bill.
AS the desperate economic consequences of that
peace" developed, successive agreements were made
under the Dawes and Young plans to tighten the Ger
man burden, but never to admit the truth that the
entire reparatons machinery ultimately would have
to be junked.
Finally. the experts at the Basic conference this
on paying That was followed by the recent German
statement to the same effect.
Now it is up to the politicians again. But, in
stead of facing the facts and dealing with them they
plan at Lausanne to fool their peoples againat least
long enough to get the politicians by the next cleo
tions.
The same kind of allied deception regarding rep
arations has characterized the official American at
titude toward debts For twelve years Washington
tried to maintain the absurd fiction that there is no
connection between reparatons and debts. But be-
cause of that connection which it did not publicly
admit the Washington government had to make So
called refunding agreements which cancelled those
debts from 25 to rs cents the dolar-a the while
swearing to the American people that the debts would
be paid and that cancellation would be permitted
under any circumstances
Last summer the European economic crisis be-
came so acute and the danger of wholesale central
European Reputation of private debts became i'm
minent Hoover had to intervene with his belated
one-year moratorium plan on both reparations and
debts.
At last washington had recognized the relation
ship between the two problems that the allies could
not pay us unless they paid by Germany and
that Germany could not pay them unless continued
to loan her the money,
But however by refusing to call congress into Spe-
cia session to handle this legislative matter mis-
handled the situation that public sentiment later
turned against the moratorium AS a result, Hoover
and congress now running for cover and trying
to wash their hands of the issue until after the
election.
II American and European politicians continue this
long policy of deception and cowardice there grave
danger Of European financial collapse which in turn
viii retard American business recovery.
We believe it is the duty of our government to send
representative the Lausanne conference because
there can be no conference settlement without
America the chief creditor. We believe America
should 60 into the conference with definite program
That program should recognize the unfortunate
fact that Preparations and debts will be paid
America should give her debtors the chance OF
further debt cancellation in return for foreign
ment reduction permitting reduction Of American
Armament expense, leave the European govern
ments to the remaining alternative of open repuda
ton and the fatal consequences that entails for their
future credit
If there is any other honest or constructive policy
possible for the United States it has not set been
mRgsstsd