Evening star., 1932-11-23

yided In the original agreements, show
concessions ranging from 80 per cent
to 80 per cent OF the total amounts
that were due
As indicating the consistent policy of
adjustment to ability Of the debtor TO
pay. I may cite President Harding S
Recommendation to Congress regarding
the first of these agreements, that Is,
the British settlement. Again the prin-
ciple was fully elaborated in the an
nual report for the fiscal year 1925 OF
the World War Foreign Debt Commits
sion, which comprised members Of both
political parties, and in the reports of
the WAYS and Means Committee Of the
House Of Representatives upon various
settlements. The Congress, in ratifying
the settlements, agreed to this pri1i-
ciple. continued to follow this policy
in the statement 7 made on June 20,
1881, and in my subsequent message TO
the Congress, proposing postponement
of payment during the fiscal year 1882
and their subsequent repayment over
term of years.
Separate From Preparations.
4. From the time of the creation of
these debts to the United States, this
Government has uniformly insisted that
they must be treated as entirely Sepa-
rate from PREPARATION claims arising out
of the war. The reasons for adherence
to this position are plain. After the
war we refused to accept general rep
arations or any compensation in terri
tory, economic privileges or Govern
ment indemnity.
Moreover, in the matter Of repara-
tions and other intergovernmental debts
arising from the war, our position Is en-
tirely different from that Of govern
ments that are both creditors and debt
ors. Since we owe no obligation OF any
kind to others, no concession made IN
respect Of payment owed to us could
either in whole or in part be set on
or balanced against claims owed by US
to any other creditor OF our own coun-
try. On the contrary, every such con-
cession would result in the inevitable
transfer of a tax burden from the tax
payers Of some other country to the tax
PAYERS in our own, without the posi-
bility of any compensating seton.
"As Secretary Of the Treasury Houston
pointed out as early as March /, 1870
in response to note from the brltlsr
government suggesting general can
collation. Of war debts:
zee OF course I recognize that
general cancellation of such debts woulc
| be of advantage to Great Britain anc
| that 1t probably would not involve any
losses on her part. As there are M
obligations of the United States Govern
ment which would be Cancelled under
such a plan, the effect would be tnat
| in consideration Of cancellation pS
| the United States Government o.
obligations which 1t holds for advance:
made to the British government ane
other allied governments, the British
government would cancel its oeot
against France, Italy, Russia and nel
other allies. Such proposal does no,
involve mutual sacrifices on the par'
of the nations concerned. It simply
involves a contribution mainly by tns
| United States"
Statement In 1891.
"In my statement of June 20, 1881
proposing that one years payment ol
all intergovernmental debts should bt
distributed over a term OF years, anc
again to the Congress on December II
last, submitting the agreements thereon
I said
"I wish to take this occasion also
to frankly state my views upon oul
relations to German reparations ane
the debts owed to us by the allied gov.
ernments of Europe. Our Government
has not been a party to, or exerted any
voice in determination Of reparatior
obligations. We purposely did not par
ticiEate in either general reparations OF
the division of colonies or property
The repayment of debts due TO us
from the allies for the advance for war
and reconstruction was settled upon
basis not contingent upon German
reparations or related thereto. There
fore, reparations is necessarily wholly
a European problem with which We
have no relation.
Deals in Retrospect.
IS. The debt agreements are, through
force Of law, unalterable save by con-
gressional action. Without entering
into legalistic consideration Of the re-
spective powers Of the Executive and
the Congress. 1t may be said at once
that. based upon the relation Of these
debts to revenue, the Congress has in
sisted upon participation in initiation OF
negotiations and in any ultimate de-
cisions in respect to the war debts. In
1921, when President Harding recon-
mended to the Congress that tbs
Secretary Of the Treasury be given
broad powers to deal with the debts,
subject to approval OF the President
the Congress did not accept this pro-
posal, but instead provided for the ere
alton Of the World War Foreign Debt
Commission, and place very close hmi'
tetions upon the action OF the COM
mission. Subsequently, the commits
sion, having found it impossible tt
reach agreements within the limits sci
by the Congress. the original act was
amended so as to permit the commits
sion to conclude settlements subject
to the approval Of the President and
the Congress.
with the exception Of settlements
with Austria and Greece. all settle.
ments we're negotiated by the Worle
War Debt Commission and every agree
ment was approved by the Congress II
acts passed by both Houses. signed By
| the President
Believing that emergencies OF tenn
porary character might arise in some
cases during the depression-which has