Evening star., 1932-01-30
Lausanne Delay Stirs Sharp
Comment on Debt Situation

Postponement Of the Lausanne Con-
ference on German reparations BY
European nations is believed by Ameri'
cans to increase the difficulties in the
way OF collection of the debts to the
United States Government German
declaration Of inability to pay, combined
with French efforts to link German
payments with debt installmentS, leadS
to predictions that there will be neceS.
sity for separate action on the part oi
this country.
Indefinite postponement of the
Lausanne Conference" according to the
Springfield (Mass) Republican, lis an
other of the diScouraging delays which
make it sometimes seem doubtful
whether the race against the bank
ruptcy Of civilization will be won. Last
year was year of postponements, eX-
cusable only If made good by decisive
action this year, but things continue tC
drift. Whether or not it is necessary
the postponement of the Lausanne
Conference, together with growing doubt
whether it will ever be held, is a blow
to hope of progress this year. Unfavor'
able as conditions may be just now, il
would be rash when they are growing
wc to assume that they will be better
y8r hence"
although only France" argues the
Indianapolis News, has formally as
serted that lasting concessions to Ger
many can be considered solely in pro-
portion as they are matched with
American concessions, that attitude
enters prominently into the situation
Congress, in ratifying the one-yea1
moratorium, took the position that the
affirmation was not to be interpreted as
willingness to cancel, or decrease, the
debts. The United States Uhus has
stood aloof from Lausanne. The bear
ing of national policies is manifest
Preparations and debts affect the whole
structure of foreign trade and banking
in an unsettling manner. Immediately
the delay of the reparationS sessions
further clouds the already cloudy out
look for agreement on a program at the
armament limitation. The financial
aftermath of the war must be dealt
with before much accomplishment In
that direction appears probable"
THE chief source of curiosity in the
United States" thinks the Nashville
Banner, concerns itself with why
Europe can continue to spend huge
sums for armament in apparent prepa-
ration for and apprehension of another
war and still be unable to pay its
obviously just debts to the United
States" The average American cannot
see why all Europe should not tremen-
dously reduce its vast expenditures fol-
arms and attain an equitable ratio OF
security In that manner as well as by
arming at every possible point
THE United States cannot fall" in
the opinion of the Oakland Tribune
"to be interested in what takes place
in the coming months while the various
nations are adopting policies to meet
the German announcement that repara-
tions could not be paid" The Birming-
ham Age-Herald believes that "it
England and France get together on g
Joint program, we shall have to pay
the piper" while the Worcester Eve
ming Gazette suggests that 'it may be
no easier to deal with the problem six
or eight months from now than it i
today" The Rock Island Argus
advises that I'VE may hold ourselves
aloof from the matter of German
reparations as not being our affair, but
in reality our interests are directly in
volved." That paper states that "the
moratorium on the debts was the be-
ginning of movement which is bound
to eventuate in further revision"
Neither political party in this
country" concludes the Roanoke
World-News, sis anxious to plunge into
an argument connected with war debts
and reparations." That paper offers
the further comment: "Smce most OF
the war debt agreements provide that
debtors may, on 80 days notice, post
pone payments on account of princi-
pal only for two years, cancellation of
further reparationS payments by Ger
many may cause her creditors to in
woke this protective measure. France
has the option of postponing principal
payments for three years. More liberal
options, which would have allowed
France to postpone all payments be-
yond s20,000,000 up to June Is. 1882