The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-11-24
Two Debt Policies

Two Dent POl1c1eS
President Hoover's debt policy as set forth
Wednesday represents high type OF craftsmanship
1t Is call for action while the house is on fire
President-Elect Roosevelt's reply is a too clever
attempt at party maneuvering unworthy Of the man
and Of the hope which the electorate has reposed in
him Its net effect would to postpone action while
the house is on fire.
MIR. Hoover and will ask congress for action.
But Mr.. Roosevelt can block action because he con-
tros the session Of congress which meets in ten days
While on casual reading the evasive Roosevelt
statement might seem to open the way to negotiations
and to differ from the President only what Roose-
velt calls matter "of secondary Importance and
method in fact it would prevent immediate negotia-
ton. which is the chief issue
Mr. Hoover proposes revival by congress of a COM
mission to hear the debtors pleas and to consider
those pleas in relation to the world economic and
disarmament negotiations.
Mr. Roosevelt, without committing himself to any
thing definite falls back the subterfuge that con-
tact between debtor and creditor best can be main
tanned through existing diplomatic channels-which
leaves the whole problem in its present state of dis
astrous deadlock.
The diplomatic intercourse, which Mr. Roosevelt
suggests, already has taken place and has been ex-
hausted because congress- in it's resolution year ago.
slammed the door on any negotiations or change of
policy.
That method has been exhausted because Mr.
Hoover as defeated candidate can not speak au-
thoritatvey for the American people and the debtor
governments know he not. That method has been
exhausted because Mr.. Hoover has no control over
the congress which must pass on any agreement ne
gotated by him.
II the successor of Woodrow Wilson, under whom
ne served can not remember what the senate did to
a foreign agreement negotiated by President ac-
cused of ignoring the senate Franklin d. Roosevelt
at least should recall that only congress can make or
remake debt agreement
And congress now is controlled by the Democratic
party of which Mr.. Roosevelt is the leader Theirs
is the responsibility Neither Mr. Roosevelt nor his
party can run away from it. Mr. Roosevelt tried to
run away in his statement Wednesday night and
failed.
Mr.. Roosevelts official pronouncement says in am
biguous words what he was reported to have said
more directly in private to his Democratic party
leaders: THE debt problem is not our baby"
But 1t will remain their doorstep just the same
Like the depression, of which it is part the debt
problem will continue to exist to the detriment of
the nation and of the world until they do some
thing about it.
That is why we doubt that Mr. Roosevelt can
continue to let the demagogs of his party dictate his
policy. Mr. Roosevelt, as the party leader, will have
to do something about the debts, whether he likes
1t not
Whether he will come to this position soon or
late do not know but that eventually he will fol-
low the general lines of the Hoover policy we are
confident. His hands will be forced by the facts
just Mr.. Hoovers unwilling hands finally were
forced by the facts
This Hoover policy should not be confused by the
public with its caricatures drawn by its enemies.
1t does not propose complete cancellation or even
unconditional reduction but is an attempt to get
something for the United States worth more than
defaulted paper
AS a business proposition in the interest of the
American taxpayer, it avoids forcing default if
through bargaining it gain foreign trade advan-
tages arms reduction which would cut taxes and
help restore American prosperity
1t does not commit us to anything in advance eX-
cept opportunity to find the facts and to negotiate
Meanwhile it proposes that if any debtor can
show that its December debt payments would under
mine foreign exchanges otherwise injure Amer
lean foreign markets economic interests America
will attempt to adjust those payments to minimize
such further depression shock
That is a realistic and constructive policy. 1t
should prevail, unless Democratic partisan leaders
wreck it and thereby prolong the world depression in
which we are suffering.