Evening star., 1932-07-24
WAR DEBT REVISION IS URGED
BYBORAH IN PLEA FOR TRADE
Continued From First Page.)

TOO, must ylclQ W Tie ulCIdCeS Oh con-
science and the demands of justice
With the settlement at Lausanne must
inevitably 60 sooner or later the war
treaty will come along"
What the world wants and must have
if veritable collapse is to be avoided
he said. is the restoration Of confidence
faith in government and govern
mental policies, faith that when money
is invested it will not all be grabbed
for taxes, faith Of the lsborer that he
may enjoy the legitimate fruits of his
! labor.
Disarmament Need Cited.
Lausanne is the most important step
taken since the war looking to the res
toration of confidence in political and
business affairs" he added. But, i'm
portant as that step was, other steps
must be taken before the foundation for
economic recovery can be regarded as
secure. The test and the response to
Lausanne is Geneva. Those who labored
so successfully at Lausanne for eco
nomic recovery must have had in mind
and SO all the world has in mind
the question of disarmament. A dis
armament conference is in the highest
sense an economic conference. The
vast burden of armaments eating up
the earnings of the taxpayers in the re-
spectlve countries, drawing constantly
from the reservoir of credit which
should go to trade and commerce. con-
stitutes an all but insuperable barrier
TO the restoration Of that confidence
which is the basis Of economic recovery
1T seems to me that 1t will be i'm
possible for Europe to regain the con-
- hAr hrrrt ,,oto
much more difficult to regain the con-
f1dence or cooperation of American
business and American taxpayers SO
long as the continent remains an
armed camp. The people and GER
tainly the taxpayers, of this country
will not believe cooperation under
such circumstances can result in any
thing but continued economic distress
and financial chaos. Any economic or
financial scheme, therefore looking to
full cooperation upon the part of
the American people. the American tax
payers, 1 venture to believe, must rest
upon the reasonable assurance that
the earnings of the people. the savings
of the people. the fruits of any settle
ment had, will be devoted to construc-
tive and not destructive enterprises.
In this connection we may refer to
! the so-called accord Of confidence or
understanding had between Great
Britain and France This has given
rise to much criticism in this country
Doubts have been expressed as to
whether this was not an open mani
festation Of antagonism toward the
United States. and as to whether it
might not have as its real purpose an
effort to bring undue pressure on the
United States for debt cancellation and
kindred subjects. 1t seems to me wiser
and likely more in harmony with the
! facts to give to this accord a higher
and more exalted purpose
Peace Basis Widened.
How can there be anying in the
nature OF permanent peace or disarma-
ment in Europe except upon the basis
of accord between these two great
powers? How can We hope for prog
reSS in economic recovery unless these
two nations work in closest harmony?
l can see great and permanent good
in this accord and l can see no harm
i'll it. What / should like to see is amity
and more amity, harmony and still
greater harmony, among all nations,
and particularly the nations of Europe
1t Is the only hope for peace and dis
armament
We are advised constantly that Eu-
rope hates us. Probably So. But l
could md it in my heart to forgive
all such feeling of hatred if it leads to
frlendlinesS and accord bstween the
nations Of Europe. For myself. l am
happy to see any movement IN Europe
which SENS to recognize that those
things which work for the true ag-
grandizement OF nations can be more
fully realized through friendship and
open undt trstandingS than through Sc
cret diplomacy and force
The adjustment OF reparations a.
Lausanne has brought 10 the front
again the question of the debts owing
to the United States from certain gov
ernments in Europe What is to be
our attitude toward readjustments or
cancellation? Has new situation
arisen which makes it necessary for
our people in their own interest to re-
consider the adjustment of these debts
heretofore made? 1 do not think 1t
would be correct to say that a new
situation has arisen. But I do think
that If the policies initiated at Lausanne
are carried forward. there will come a
time when it will be distinctly to the
interest Of the people of the United
Stat>.to consider again the question
OF "a debts. In expressing the views
which, I do at this time upon this sub
ject. it is hardly necessary for me to
say that am speaking for no one but
myself.
World Wide Trade Crisis.
"'I feel now. as I have felt from
the beginning. that this economic cat
aClySm had its origin in and during
three fateful years. has been sustained
and aggravated Dy and through inter
national conditions superinduced by
international policies growing out OF
the Great War 1t would be easy per-
haps to show that local or purely ma
tional policies have accentuated condl-
tionS in the respective countries. But
the great dominating forces contribut-
ing to our present catastrophe have
been international or. if not wholly
international, have been Of such ma
ture that their effect was International
Therefore. in considering our problems
of domestic concern. we are compelled
to consider matters Of international
concern"
Senator Borah said the debts due the
taxpayers of the United States for
money loaned to foreign governments
are just debts. and that every equity OF
the debtor has been allowed and gen.
erouS reduction made. There can be
no reason, therefore, he declared. for
urging a reduction or cancellation Of
these debts other than that it would be
in the interest of the people of the
United States to do SO.
Upon that theory, and that alone. "
he said. ''it seems to me the subject is
open for discussion. Will reduction or
cancellation bring to the people of the
United States an equal or greater bene-
fit than the amount which they may
collect from the debts? Will such a
course open foreign markets for the
products of the farm and the factory.
cause the price level to rise, put an end
to unemployment, and thaw out the
frozen credits of the bank? I enter