Evening star., 1932-11-15
AMERICA TO INSIST
! ON DEBT PAYMENTS
U. S. Declared Wiling to Dis
cuss Problem After Decem-
ber Obligations Are Met.
CONTINUED From First Page.)

NAOAAbAAAdC0 GAOAAA AASo S6S.y
that while many of the Republican
leaders are inclined to be more lenient
toward the foreign nations II the Dis
armament Conference Is successful the
Democrats. while intensely interested in
this question, do not believe that the
American people should pay for the
disarmament of other nations.
The whole matter of reduction or
cancellation of debts hinges entirely on
what adequate compensations the Euro
pean nations can offer to American raw
or manufactured products, II the Amer
ican people agreed either to cut sub
stantially the debts or even cancel
them.
The principal reason on which the
debtor nations base their request for
drastic cut of the debts is that the
transfer Of large quantities of gold from
one group of nations to the United
States has caused serious disturbance
In the economics of the world and has
proved conclusively that those trans
fers are as harmful to the creditor
nation as to the debtors. A number OF
economists, who play an important role
with the Democrats, agree with this
argument. But as America. must be
compensated for the loss sustained by
Ill ENCHJudl ICQuCb1On VI uCDbop AZ WhA
be necessary for the debtor nations to
open the gates which have been shut
in recent years to most Of Americas
trade and facilitate freer economic
intercourse.
To Keep Open Mind.
The Democratic leaders, who agree
that there must be quid pro quo in
such an operation, are willing to discuss
at the coming international economic
and monetary conference an eventual
reduction of American tariffs In favor
Of certain European products.
The conversations regarding these
complex economic questions are likely
to be protracted, but America Is willing
TO indicate that 1t will attend the eco
nomic conference with an open mind.
This is the maximum concession. 1t Is
said in we'll informed quarters, that this
country can make to the European ma
tions in answer to their requests as ex-
pressed in the British and the French
notes Of last week. But pending final
agreement based on concessions on both
sideS-financial as far as America Is
concerned, and economic as far as Eu-
rope is commemorative installments due
on December Is must be paid.
Way EEeIcE DctduiSs
Closely watching developments, legis-
lators already were voicing differing
views. But from them protruded the
possibility that Congress may prefer a
default of any or all Of the $123,000,0 900
due from European nations December
15, to further moratorium pending
debt conference.
This would leave the obligations on
- nr
was the apparent intention Of Congress
when, in approving the one-year mora
torium, It voted Overwhelmingly against
further reduction or cancellation.
Nor have possibilities of a default
been lost sight of by the administra-
tion, whose leaders felt such en- occur
renee would affect world economic con-
ditions adversely. But they came to
believe also that further aid for our
European debtors depended primarily
on a self-help program for settling cur
rency, armament, tariff and other con-
troversies in a fashion so militant as to
impress American public thought.
McAdoo Wants Rejection.
1t was one of the Democratic legis-
lators-Chairman Collier Of the House
Ways and Means Committee who yes
bCIudJ cdlu
"If the debtor nations can't pay, let
them owe us"
Some others of his party were In
apparent accord with the Mississippian,
who last year led the fight for the
moratorium. Senator -elect William
Gibbs McAdoo, who handled most Of
the loans as Secretary of the Treasury
during the Wilson administration,
stated at his California home that the
British and French proposals should
be rejected promptly" Chairman Byrns
of the House Appropriations Commit
tee opposed extending the moratorium.
Joining in this view was Senator
Ashurst, Democrat, Arizona, while Sem
ator Bratton, Democrat, New Mexico,
was quoted as favoring letting the debts
default If payment cannot be made at
this time.
Two other attitudes also found ex-
preston at the Capitol One, that debt
concessions must be accompanied by
European concessions In other matters,
was adhered to by Senator Borah, Re-
publican, Idaho, who linked debts and
armament expenditures.
The second is that the United States
should re-examine the debt situation.
Senator Fess, Republican, Ohio, took
this view, favoring an international
conference looking toward "readjust-
ments," but not toward cancellation =
Secretary Mills said Americas even
tual action rests chiefly with the Demo-
cratic House Of Representatives, and
noted that neither the British nor
French note suggested December in
stallments would not be paid.