The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-09-28

One hopeful light shining through the fog of CAM
paign politics on international affairs is the organiza
ton of the committee for consideration of inter-
governmental debts
When such an important group of business farm
and labor leaders gets together action is apt to fol-
low Alfred P. Sloan, president of General Motors;
former Ambassador Henry p. Fletcher Dr. Nicholas
Murray Butler, John w. Davis, Frank O. Lowden D.
B, Robertson, Louis j. Taber George W. Wickersham.
and Alfred E. Smith, are among those representing
widely different regions business interests and poll
tical parties which makes the committee really nom
partisan.
What they are searching for in this complex of
figures, says Sloan, is method of turning the prob
lem and its solution to the best possible advantage
for the great mass of the American people"
In commenting upon the enthusiastic public re-
spouse to the creation of this new organization Sloan
warns that its motive is not necessarily cancellation
or revision but first to study the problem-and then
TO accept the scientific conclusion, whatever that
may be.
That is the proper spirit Of open-mindedness But
this group of learned and practical men can not he
entirely unmndful that many such scientific studies
have been made already and that virtually all have
come to the same conclusion.
Indeed, on the same day that Sloan announced his
permanent committee the Brookings Institution of
washington whose scientific standing is unexcelled
published the results of its ten years study of the
problem.
This volume War Debts and World Prosperity"
by two recognized authorities, Harold c. Moulton
and Leo Pasvolsky concluded:
"A complete obliteration of all reparations and
debt obligations would promote, rather than re-
tard world economic prosperity.
collection of these intergovernmental debts would
ha ea1l v
the creditor countries"
These conclusions have been. demonstrated by so
many scientific studies that it is improbable the Sloan
committee will have to spend much time on this
factua phase of the matter The more difficult ques-
tion-and which the Sloan committee has set be-
fore itself-s: What is to be done about it9
Even here the answer theoretically is not diff
ncult. Most of the experts agree that the United
States should trade debts revision cancellation for
foreign trade agreements as suggested by Alfred E.
Smith and others exchange debt reduction for
armament reduction, as urged by Senator Borah or
perhaps make both trades.
Certain American experience in canceling these
debts from rs to rs cents on the dollar under the So
called funding agreements-whch resulted merely in
liberating more foreign money for armaments-shoud
teach us to get something for money the next
time
Debt cancellation, following the Lausanne repara-
tons cancellation speed world recovery and Amer
ican prosperity, but only under definite conditions
among which armament economy is the most i'm
portant
The difaculty is not in discovering an intelligent
solution but in getting the politicians TO act Hoover
is on the fence. and Roosevelt and the Democratic
platform are on record against canceIation.
That is where this committee of business farm
and labor leaders be Of great service It can help
to enlighten both Hoover and Roosevelt and help to
show the fearful managers Of both parties that solu
ton of the debtdepression problem is expedient pot
ically