Evening star., 1932-06-10
COOLIDGE OPPOSES
DEBT CANCEL|NG
Former President Dec ccres
Burden Would Fall on Ameri-
can Taxpayer.
BY the Associated Press

BY the Associated Press
NEW YORK. June 10-Calvin Cool
idge, discussing the international war
debts in the July issue of the Inter-
national -Cosm- politan Magazine, de-
clares these obligations cannot be
Cancelled
The former President, after reciting
the circumstances connected with the
various debt settlements agreed upon
at the time he was Chief Executive
writes:
Il know We were not trying to over
reach anybody nCr trying to drive a
hard bargain The money we furnished
we had to borrow. Some one must pay
it, 1t cannot be Cancelled. If We do not
collect 1t from Europe. we must collect
it from our own taxpayers"
Pointing out he has no knowledge OF
what is in the mind of the present Gov
eminent regarding the debts, Mr.. Cool
idge states that. at the time the settle
ments we're made, I'VE were seeking to
restore faith in international finan-
cial integrity for the go-d of the world.
Reasons for Loans.
While calling attention to the various
loans made Europe by the United States
he writes:
But we get little help from specific
figures or reasons for making the leans
In the main we furnished money to
carry en- the war. Others borrowed it
for that general purpose. After the
armistice We furnished more money for
fo-d. supplies and reconstruction.
Years after We settled the bill OF
Si G
at per cent interest for s5888, 600 600
We thought that was within the
capacity of the debtors to pay. We
knew they must get the means to pay
by producing gods and selling services
That is the way We got the means to
make the leans. If We could produce
Europe could make the return to us In
62 years"
Influence on Trade Problem.
The effect OF debt payments on for
eign trade. Mr. Coolidge holds, is some
what problematical.
With all its unknown and unknow-
able factors" he explains, 1T is not pos
sible to make an accurate analysis OF
either foreign or domestic trade. But
there are some features of its relation
to cancellation that seem plain. In the
first place, to remit the debts would be
a direct subsidy of over a quarter Of a
billion dollars per year to the govern
ment of foreign countries made for the
assumed purpose Of inducing their
people to trade with our people While
that would be something distinctly new
under the sun. we ought not to discard
it on that account without examination.
Higher U. s. Taxes.
While there is some sentiment in
trade, 1t is largely a matter of interest,
going where it is most advantageous
The foreign people being relieved of
certain taxes. it is assumed would have
more money to spend. But how can
We be assured it would be expended
here? The natural place for them to
buy goods would be where the price
was lowest. Our taxes would be higher
because the bonds We issued to get
money to lend Europe must be paid
That would increase the cost of our
production.
Instead Of being better able to meet
world competition and sell more goods
to Europe, the chances would seem to
be that our costs would be SO high that
Europe would not only find cheaper
goods in other countries. but would be
better able than at present to take
away our foreign trade in non European
countries"