Evening star., 1932-11-21
Country Is Clearly Divided
On Treatment of War Debts

per cent of its original debt, and Is
now relatively prosperous, should be
asked to pay more than Great Britain,
which ambitiously undertook to pay
all but 20 per cent OF its original in
debtedness. If the debtor ma
tions could raise reasonable sum by
bond issues to make cash settlement,
the United States would do well to ac-
cept 1t in lieu of the whole indebted
ness, and thus give the nations q fresh
start. Such a settlement would be un-
popular in many quarters, but 1t would
pave the way for enduring economic
recovery and thus vindicate itself in
time"
"By standing pat-and stupid" re-
marks the Cincinnati Times-Star.
America can throw the debtor nations
into technical default. This will not
bring in any money, nor do anything
except further injury to world f1nan-
cial and credit fabric of which the
country is part. The obvious thing
to do is what any private creditor would
do-make an accommodation with
debtors that would envisage facts. This
need not mean cancellation, although
it would entail at least drastic reduc-
tions Of the debts. The Presidents
plan OF making concessions in return
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debtor nations has possibilities. In any
event, it is time the American ostrich
pulled its head out of the sand"
"It is more of an assumption than q
proposal capable of proof that the pay
ment Of these debts is disadvantage
to cur foreign trade" says the SPRING
field (Mass) Union, while suggestions
come from the Chicago Tribune that
mystery surrounds the new European
drive to modify the war-debt agree
ments," and the New York Herald
Tribune sees almost indecent haste"
on the part Of the debtor nations to ask
for postponement Of payments and re-
vision Of the funding arrangements.
thought" dealing with the subject, the
Indianapolis News declares: 1T rea-
sons that the debts will not be paid
anyway and that the sooner this is
taken for granted the better 1t will be
for making solidly based calculations
for the future. Some who argue in
this way are suspected Of desiring to
clear the slate Of debts to the Nation
in order to improve the status of for
eign nations debts to individuals. The
principle Of national honor in matters
of Indebtedness Is, however, important
despite such 'realists.'''
With a comprehensive review Of the
situation, the Roanoke World-News
concludes: Had we abandoned all
claims for refund of war money when
We withdrew troops from Europe, there
can be no question but that the road
to rehabilitation would since have been
much easier both for us and for Europe.
Had We not put up tariff barriers
against payment in goods, the present
crisis might have been avoided. Since
l4Nyears have passed, with frequent seal
ing down, with constant pickering, with
little likelihood that the payments now
to be suspended will be resumed, it
would seem to be time for this country
to stop its foolish talk OF expecting pay
ment to the last penny, and begin ne
gotiations for more secure peace that
VIII call for less costly armaments and
for less prohibitive barriers to interna-
tional trade. When those two objec-
tives have been accomplished, we can
well afford to forget the debts
1t is pointed out by the San Antonio
Express that "the original refunding
settlements were based upon each
debtors capacity to pay installments OF,
principal and accruing interest in
manner and on q scale which would not
impair its economic life," and that 'thG
practically normal conditions antici-
pated when those debts were refunded
have been overturned by the depres-
sion.'