The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-12-05
BY WILLIAM PHILIP SIMMS
Scripps-Howard Foreign Editor

WASHINGTON, Dec. Sin the
war debt problem, now squarely up
to the United States, are questions
involving the fate OF nations and
the fortune, good or bad, of peo-
pie clear around the globe.
This is the studied and expressed
opinion of leading statesmen, diplo-
mats, economists, labor leaders and
business organizations and men on
both sides of the Atlanti"
Existing reparations and war debt
installmentS, ca.led 1ur /
ent agreements, over the sixty years
they are supposed to be in force,
total more than sixty thousand
million dollars. That is five times
all the gold in the world.
Germany legally is bound to pay
the allies more than $4,000, 000,0 900
if the Lausanne agreement collapses.
The allies legally are bound to pay
the United States, in the same
period, more than 100000, 900.
Similarly, the allies owe one an
other.
Payable in Gold
Most of this sixty thousand mil
lion dollars is payable in gold. And
two countries America and France
have two-thirds Of all the avail
able gold.
Trained economists-and those
on the inside of governments agree
with them-say these debts are not
going to be paid. They can not
be paid.
There simply isn't the gold and
there simply isn't commerce enough
to produce the necessary favorable
trade balances. The capacity to
pay simply isn't there.
Moreover, observers are con-
WINGED, there would be revolution
in. some of the countries if the gov
ernments in question even tried to
collect the taxes with which to pay.
Germany, for one, solemnly has
warned that, come what may, she
will pay no more reparations.
Fascists, Communists, CentriSts,
and Junkers are agreed on that, if
on nothing else. Any government
at Berlin that attempted to make
the payments would be swept from
office within forty eight hours.
War Would Result
Should France attempt to force
Germany to pay reparations, there
would almost certainly be war. If
she occupied the Rhineland in an
effort to collect, blood would flow.
If France does not collect from
Germany, she is not going to pay
the United States. No matter what
we may think about it, that is. the
case.
She will not pay us and she will
not pay Britain, to which country
she owes almost as much as she
owes us. Any Paris government that
added to French taxes to pay war
debts would be doomed from that
instant.
If Britain receives no reparations
from Germany, and no war debt
payments from France, her ability
to pay the United States will be I'M
dermined hopelessly.
Must Face Facts
Default or reputation is in sight.
Getting bitter won't help. The
facts remain the facts, just the
same. AS sane, practical people,
We still have to face them. AS we
can't serd battles@ips to collect thc
money, or annex territory in lieu
thereof, Tvs up to us TO md - 20
other alternative which Will yield us
the greatest possible quid pro quo.
This means it is up to congress.
Congress alone has the authority to
act. Diplomats can negotiate. The
President can recommend. But
congress will have the final say.
Whatever is to be saved from the
wreck, congress must do the saying.
And this can only be done by ne
gotiation. That way the American
people stand to get something
trade, cash, arms reduction. eco
nomic benefits or some of all these
combined.