The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1932-11-17
(Official City. State and County
Newspaper
MANY Issues Involved

Many Issues Involved
Settlement of the debts owed this
nation by Europe is complicated and
aggravated by many issues and eco
nomic conditions, few of which could
be foreseen when these debts were
contracted.
For the next few months there will
be much discussion over this great
international issue. It's settlement
touches the tariff, world markets, ar
maments and host of minor side is
sues not now apparent.
President Hoover and Franklin D.
Roosevelt have unequivocably an
nounced that they are opposed to cam
collation.. Leaders in both branches
of Congress are on record in many
instances against cancellation.
European governments have made
commitments among themselves re-
garding their own obligations to one
another. AS President Hoover clearly
points out in his telegram to Mr..
Roosevelt, these commitments could
not be based upon any assurances of
the United States Remission OF
Germany's reparation obligations in
part at least was contingent to some
extent upon what debt adjustment
France and England could make with
the United States.
The problem then passes from one
Of cancellation to policy which will
permit Europe to make other tangible
compensations. The form is a hard
one to determine. Alfred E. Smith,
speaking in Washington last spring
at jefferson Day banquet, suggested
that in return for SO many millions
In orders Of our goods certain per-
centages of debts be cancelled. This
scheme was heralded by manufactur-
ers as a medium to open up Euro
pean markets to American goods, now
closed by discriminatory tariff regu-
lations and other preferences in which
the United States have been ignored.
Negotiations in regard to world
debts in the United States is not one
OF diplomacy alone, but Congress must
be considered as its consent is neces-
sary. Despite the fact that President
Hooyer's plan of debt moratorium
was agreed to by Congress. that body
has gone on record very definitely
against cancellation. It defined It's
approval OF the Hoover moratorium
in definite language at the time. Any
plan proposed by President Hoover
will mean a battle in Congress.
The recent tariff conference at Of
tawa, the net results Of which will
cause a decrease in trade with our
northern neighbor, has not put this
country in very friendly attitude
toward Great Britain. There also
comes into the picture the millions
spent by France, England and Italy
in building up great ornaments. To
the man in the street even, i. must
be impressive that less money spent
on ornaments would mean more
money to pay off debts to the United
States.
Boiled down and Shorn of all diplo-
matte verbiage, cancellation of the
foreign debts means the transfer of
some eleven billions to the backs OF
American taxpayers.
But this is not all of the war debt
situation. From time to time, starting
with the Harding administration, many
generous concessions have been made
to Europe. There has been material
debt cancellation already so that the
obligations which the United States
now insists on being paid have been
diminished by American generosity
during the boom days when it ap-
peared wise public policy to deal leni-
emily with foreign customers.
Turning to what our debtor nations
spend on arms, we find that expendi-
lures for military purposes during the
last fiscal year by these nations now
asking cancellation or extension
amounted to nearly two billion dol
lars. France and Great Britain, which
nations owe US the most, spent more
than half Of this amount.
Those who urge cancellation Of the
war debts, state that such q policy will
end the present depression. This IS
branded as fallacious by one group Of
statesmen and applauded as logical by
another. It Is certainly true that the
moratorium, which was to ease eco
nomic conditions. did not work out