Evening star., 1932-05-08

axioms from which we may reason to
agreed conclusions. Where there are
no common principles from which 10
start it is useless to argue, for argu-
ment, no matter how often repeated or
how prolonged, will never lead to
agreement.
AS I see the problem this necessary
foundation Is that we should all accept
what I perhaps may call the political
| foundations Of the treaties of peace as
at least our working hypothesis, and
make 1t clear to all concerned that il
they are at some future time to be
modified, as some hope and others fear,
modification will be sought only by
peaceful means-in other words. that
we not only signed the Kellogg pact
but mean to keep it. Then We may go
forward to the discussion of problems
which cry for settlement.
At this moment they are two: Debts,
including reparations, and disarma-
ment. How do they stand?
Take first international Indebtedness.
The Four-power Conference in London
which failed to agree on any plan to
rescue the Danubian states was fol-
lowed by discussion Of the same subject
by the conference of the International
Chamber of Commerce at Innsbruck.
1t Is not without significance that
though the Austrian and German dele
gates maintained their objections to the
Tardieu plan, the Hungarian delegates
associated themselves with the repre-
sentatives of the Little Entente in sup
port of 1t; in other words, economic
needs are beginning to take precedence
of political antipathies.
1t was the object Of the London con-
ference that the four powers should lay
down the lines within which the Dan
ubian states should thereafter prepare
their plan. They failed; 1t would be q
happy circumstance, though perhaps
not likely one, If in view of the fall
ure of the London meeting those states
could themselves produce an agreed
plan they might ask the great powers
to fit into the framework of the larger
plans to be discussed and decided at
Lausanne.
Peoples Learning Facts.
The conference at Lausanne does not
open till the middle of June. 1t is too
early to make any forecast of It's results
or even to foresee the conditions under
which it will assemble. France is not
likely to make any definite decision, still
less announce 1t, till after the French
elections, but meanwhile public opinion
Is being gradually educated, in Europe
as in America, to a better appreciation
OF the causes Of our common distress
and the kind of remedy required
have already expressed my sense of
the high importance of the recognition
by President Hoover. in his bold and
sagacious proposal for a moratorium,
that to be successful any such proposal
must apply to all intergovernmental
payments and not to reparations alone.
NOW md a Democratic leader,
former Gov. Alfred Smith, insisting
upon the causative connection between
debts and collapse of trade The
debtor nations, he is reported to have
said, have not the money to discharge
their obligations, and me anwhile
American foreign trade has declined
so per cent in a year while huge sur
pluses of manufactured goods and
agricultural products have accumulated
Trade, be declared, was strangled by
the insistence on these debts while re-
fusing to take payment except in gold
I do not wish to comment on the
particular suggestion the Ex-Governor
made for relief of this situation. We
must agree IN diagnosis before we
agree upon a cure. We have leaders
Of both major American parties, how
ever, recognizing that part at least Of
present evils arises from intergovern-
mental debts which upset exchanges,
depress price levels and destroy power
Of debtor states to trade.
The very fact that Great Britain
has been forced of the gold standard
and driven to a protective policy Is
likely to emphasize this result, and
must, I believe, in itself compel a re-
consideration of means and possi-
bilitieS.
Loans Spent in U. s.
The money borrowed by Europe was
not shipped across the Atlantic in
gold: it was spent to buy American
produce and therefore stimulated
American production and fed Ameri-
can prosperity. The result would have
been very different if it had merely
drained away in gold. Indeed, there
was not gold enough in the United
States to have enabled them to make
the war loans in any way except in
goods.
Just as this was the only form in
which the loans could have been
granted, so it Is the only form in
which they can be repaid, for, deduc-
ton made of that part of the worlds
annual production of gold required for
industry and commerce. there is not
gold enough produced in any year to
make the payments required for the
satisfaction Of the claims of the two
great creditor nations, the United
States and France
It is then, as 1 see it, increasingly
evident these payments must be recon-
sidered, but on this side Of the Allan
tic We are constantly told that, before
considering modification or revision, the
United States must be assured that If
any concession is made by them it will
be used for restoration Of trade and
not for maintaining or piling up ex-
ceSsive arrnaments.
Thus we move in vicious circle; no
settlement of debts without limitation
Of ornaments, no limitation of arma-
ments without security. no security un-
less we can agree to take the present
territorial arrangements of Europe as
our working hypothesis and definitely
to Danish from out thoughts and ac-
tions the use Of force as an instrument
Of national policy.
Copyright, 1922
France tn Exhibit TT. 6.