The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-12-03
TRADE WAR IS
FACED IF U. S
COLLECTS DEBT
Yelled Threats Contained in
British, French Notes,
Urging Delay.
DEMAND EXPORT TURN
New Tariff Barriers Will Be
Erected, Relations Grow
More Strained.
By United Press

WASHINGTON, Dec. 3.-Serious
trade and other forms of economic
reprisals against the United States
were in prospect today, in view of
the almost certain refusal of con-
gress to postpone Europe's Deem
Der payments Or to grant immedi-
ate, general, and radical reduction
Of war debts.
The British and French notes
forwarded after telephone ex-
changes between Downing street
and Quai 'Orsay-both contained
thinly yelled threats in that direc-
ton.
Both stressed the impossibility OF
war debt payments unless the tide
of trade is turned against the United
States, to give Europe the necessary
excess of exports over imports.
Threaten Tariff Walls
At present the United States sells
abroad considerably more than it
purchases abroad. Washington.
therefore, is informed, in effect, that
if the United States continues to
insist upon collecting, Britain and
France will feel obliged to erect new
tariff or other barriers against
American goods.
Hectic days are seen ahead, &C
companied, perhaps, by Straining
of international relations such as
has not been witnessed between
America and Europe for upward of
hundred years. It will be America
against three-quarters of the globe.
Twenty nations are involved in the
drive for revision of war debts.
Stalemate Is Likely
A stalemate is foreseep as a dis
tinct possibility here. There is wide
spread sentiment in congress
against what members call rushing
into revision" and well-nigh uni
TEersal opposition to reduction unless
and until Europe shows some sign
OF willingness to participate in a
worldwide scaling down of arma-
mentS and otherwise give the
American taxpayer some kind of
run for his money.
That this Stalemate contains GER
tain elements of peril, observers de-
clare, is clearly indicated by historic
precedent. France and the United
States almost went to war in the
1905 as a result of quarrel arising
out of an almost Identical situation
The sum involved at that time
amounted to less than $5,OOO.OOO
Between 1900 and 1920, the French
committed numerous depredations
against American shipping. America
asked for indemnif1cation and. in
1881, France signed a treaty to paw
American citizens 100000 francs
the United States to pay counter
claims amounting to 100000.
Senate Rejects Idea
Then, as now, the settlement was
unpopular in France. Two INSTALL
ments fell due without the French
chamber of deputies doing anything
about it. When it did act. it was
only to reject the agreement.
mus matters stood, when in 1884,
President Jackson dealt with the
debt in a message to congress. The
United States, he said, might bar
French goods from entering the
country, or French ships from using
our ports, but that would iniure
America as much as it would French
trade.
French property, however, might
be seized in this country weapon
the French then were using against
the Portuguese.
The senate refused to go along
with Jackson, but the house not
only upheld the treaty, but called
Tor preparations" to meet any
emergency thus created.
French Are Reused
France famed with excitement.
She recalled her minister at Wash
lngton. She offered the American
minister in Paris his passport. She
prepared for war. In a huff, now.
the chamber appropriated the
money to pay three installments,
but stipulated that it was not to
be paid until America apologized.
This "Old Hickory" refused to do.
He did say, however, in his note to
France, that no reflection on French
honor was intended
just when things looked black
est, France construed Jackson's note
as satisfactory, the storm subsidized,
and the ridiculous dab of small
change was paid.