The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-02-08
EUROPE WOULD
PROFIT IF U. S.
FOUGHT JAPAN
Loss of War Debts Is Seen
Should America Become
Involved in Conflict.
BY WILLIAM PHILIP SIMMS
scripps- Howard Foreign Editor

Scripps-HoWard Foreign Editor
WASHINGTON, Feb. 8-The ten
sion had not abated an iota here
today, despite an official announce
ment from Toxic that Japan has
no political ambitions in the vicin-
ity Of Shanghai.
Washington is aware that an I'M
revealed, but adequate" number
Of japanese troops now are on the
way to Shanghai with orders to
blast out the Chinese defenders at
any cost The situation, therefore,
is more than ever viewed as an
open powder barrel liable to ex-
plode at any moment, involving
others beside the Japanese and Chi
nese.
Washington remains on needles
and pins. 1t still is unable to
fathom what is in the minds Of the
Japanese general staff, and upon
that everything depends. If the
Japanese general staff is convinced
that now is the moment to round
out the mikados empire, nothing
will be allowed to stand in the way.
Huge Losses Threatened
World economies, observers here
realize, places the United States in
the gravest danger in the event Of
the conflict spreading.
What, in effect, amounts to $751;
000,000,000 advance tribute is al
ready in the hands of foreigners
should this country be drawn into
a losing war.
Europe owes the United States
approximately $4,000 100000 on war
debts. Interest for the full period
of payment would amount to $10,-
000,00O,000 In addition American
private loans abroad foot up to
about $4,000 100000 making a total
of $4O,OO0000,O00
Then there are the Philippines,
Guam, Hawaii, Panama Canal and
other outlying interests worth at
least another $40, 000,000,000.
Even a victorious war with a ma
ior power would cost the United
States upward of sixty or seventy
billion dollars, according to figures
based upon the World war.
War Debts Seem Doomed
Beyond question the war debts
would go by the boards. A cold,
calculating Europe would seize the
opportunity to strike bargain for
at least that much of the price of
neutrality. For this there are Eu-
ropean presidents a-plenty.
Moreover, our immediate and
pressing need for ships and ship
ping, and the myriad other goods
and services required to carry on
the war, would cost other billions.
We should be obliged to pay what
ever price asked, thus quickly ex-
pending more than the amount due
us on private debts.
Britain, France and other nations
of the old world would not hesitate
to slap on the highest prices the
traffic would bear. They would say,
we did the same thing to them for
l9I4 10 1913.
Europe Would Profit
Our foreign trade would dis
appear, going OF European countries
just as during the World war Eu-
ropes foreign trade was taken over
by the United States and Japan.
For these and other reasons a
sorely stricken Europe, with millions
of unemployed, hardly could be ex-
pected to bemoan the fate that
threw Japan and the United States
at each others throat.
Defeat for the United States would
cost not less than hundred billion
dollars by the time an armistice was
signed, plus whatever the victorious
power could force us to pay by way
of indemnity afterwards.
A hundred billion dollars is more
than the total national wealth of
the United States as short a time
back as 1900.