Evening star., 1932-11-21

Chief among the difficulties that are
faced by the United States Government
in settling war debt questions is the
great division of opinion throughout the
country as to the advisability of further
adjustments. On one side is an in
sistence upon full payment Of the De-
cember amounts due and on the other
q belief that leniency toward Europe
means better financial conditions for
the world as whole. Under existing
conditions there Is no evidence of any
substantial middle ground.
One general position is that set out
by the Topeka Daily Capital, which
argues that cancellation would merely
take up the debts by taxes to be paid
by the American taxpayer" since the
debts "are not of the Treasury budget,
but are still to be paid, If not by the
foreign debtor, then by the American
taxpayer" The Capital also states that
the American people and Government
alike have indicated that no final debt
revision will be favored In this country,
the effect Of which would only make
huge armament budgets easier for Eu-
ropean peoples to bear"
On the other side is the group for
which the Baltimore Sun speaks, when
it declares: I'VE talk about the loss of
some $200000,000 year in the ma
tional income without stopping to ask
ourselves to what extent the loss of
trade. drop in income taxes and loss Of
customs revenues outweigh this So
called loss. And 50 far these losses
outweigh the debt annuities tenfold."
The Sun adds as to the financial trans
actions involved: Several Senators
take the irresponsible and unreasonable
position that the debtors can repudiate
If they like, and that is their own af-
fair, ignoring the damage to public and
private credit everywhere. Others, with
better sense, would link disarmament
with debt reduction-ignoring the fact
that domestic budgetry reductions have
little bearing upon the problem of trans
fer of huge funds unsupported by ship
ments of goods"
for cancellation" maintains the Cleve-
land News. This Government has
gone far in scaling down the debts
as low as 1t has. In the future. as in
the past, the welfare Of the people at
home should be the prime consideration
in international financial parleys par
ticipated in by this country" Quoting
Senator Borah, chairman Of the For
eign Relations Committee, as holding
that If a program were presented that
would restore world markets, get rid
Of the devastating burden Of arma-
ments, and restore our monetary sys-
TEN to normal conditions" he would
consider cancellation, the Spokane
Spokesman-Re adds: $50 might
the rest of us, If there were q way to
put Europe under dependable bonds
to fulfill her part Of the contract
discard her burden OF ornaments. re-
turn to the gold standard and restore
world markets. Senator Borah's con-
ditions are impossible Of attainment"
Americas question" advises the
Richmond News Leader, els not whether
she can afford to reduce the debts,
but whether she is wise enough to see
that she cannot afford to do other
wise than reduce them" The News
Leader favors prompt consent to q
postponement Of the debt payment due
on December 15." The Chicago Daily
News offers the comment: Some OF
the European countries are able, ac-
cording to all indications, to pay a
considerable part Of their war debts.
It would be entirely unjust to trans
fer to American taxpayers all the obli-
cations Of Great Britain, France and
Italy. Each OF them can nav mart OF
It's Indebtedness and still remain SOL
vent. France. which was forgiven IS