Evening star., 1932-11-20
M'KELLAR REPLIES
TO LORD SNOWDEN
Senator Cites "lnnumerable
Inaccuracies" Contained
in Statement.

uublished Friday in American news
papers by Viscount Philip Snowden
former British Chancellor of the Ex-
chequer.
Lord Snowden always has considered
payments Of the war debts to the
American Government little short of a
crime, and while at The Hague con-
ference in 1929 he was ready to wreck
the Young plan In order to obtain $50
600. 900 more for Great Britain. He
strongly resented payment of the British
war debts to this country.
From Lord Snowden's article it is not
quite clear whether he stands for revls-
ion or cancellation of the British debt
alone, or whether he advocates a gen.
eral cancellation of all war debts on the
basis Of the remission of reparations
payments by all the former allies to
Germany.
Senator Mcclellan does not argue
about the position Lord Snowden has
taken, but merely points out what he
terms the "innumerable inaccuracies
contained in Viscount Snowden'g article.
Cites Lausanne Pact.
Concerning the Snowden statement
gtressing the point that European debtor
countries no longer receive reparations
from Germany, which hitherto enabled
them to pay their obligations to the
United States, Senator McKellar says:
THE European countries last Spring
met together and agreed to remit nine
tenths of Germsay's debts to them,
provided that America would cancel the
debts due to America. The last part
of the agreement was a secret gentle
mans agreement 1t is consequently
their fault and not ours that they re-
leased Germany.
AT best, this was a conditional
agreement, evidently for the purpose
of working up the sympathies of
America and without consulting
America beforehand. In other words
the Lausanne agreement lets Germany
of, provided the United States pays for
her"
Answering Lord Snowden's statement
that the British payment will be "a
charge on the budget for which no
provision has been made" McKellar
says:
to cancel Germany's debts provided we
Cancelled the debts due trcm Great
Britain. She made this agreement
without consulting us and with the
full knowledge that the Congress OF
the United States had declared that
there would be no cancellation of any
debts. and with the fun knowledge OF
the British government that only the
Congress had right to deal with the
question of cancellation. If, therefore,
she has not taken this item (the SSo,-
O0o .00O) into account in her budget,
the fault is hers alone.
To the statement that "the debt set
Element made by Mr.. Baldwin Is onerols
and unjust" the reply of the Senator
is that I'VE Cancelled one-third OF the
British debts due us, reduced the IN
terest to about one-half of what Great
Britain originally agreed to pay, ana
have given her 81 years in which to
pay the principal in small installments
Not Extraction of Money"
To Lord Snowdens quotation Of
President Hoover's statement that I
am sure that the American people have
no desire to extract any sum beyond
the capacity of the debtor to pay the
Senator explains that this is not a
case of extracting money. The debts
are not ours but those of various Eu-
ropean nations. We are merely an ac-
cornmodation indorsor, and, as such, II
they don't pay these deptS, we must.
1T Is estimated that the American
people owe today some s2O0,0o0, 900 900
of debts. 1t, is evident that they are
not able to pay these debts as and
when they fall due, in this time OF de-
preston: and yet, Lord Snowden would
have his government released entirely
because of the depression and add their
debts to ours.
mfr. Hoover's statement binds no
one, and evidently was not intended to
bind the American Government IN any
way, as Congress only has control over
these debts, and the British government
knew this fact"
McKeIlar then challenges Viscount
Snowden to state plainly who had told
him America would be found not un-
reasonable" If Germany's creditors
would make a reasonable settlement OF
reparations
Senator Mcclellan finds a great diff
ference between the debts the former
allies owe the United States and Ger
many's reparations.
THE truth OF the business" he says,
sis that the allies had received from
Germany all that they could collect.
In addition, they were demanding from
Germany tribute-not a contractuai
debt at all. The two (the debts and
the reparations) are not on the same
basis in any sense"
"Never Considered Gift"
To the attempt of Lord Snowden to
demonstrate that the loans were con-
tribution to common cause, NC
Kellar answers that they were never
considered so. and brings forth the fact
that business was business even
during the war-since the British gov
ernment saw fit to charge $40 for each
Of the millions of Americans she trans
ported overseas.
But even If our loans could be so
construed" adds McKellar, that con-
struction would apply only to moneys
advanced during the war for war pur-
poses 1t could have no application to
money loaned since the armistice or
during the war for commercial pur-
poses"
The statement Of the former chan
cellor of the exchequer that the British
debt aggregated $4,000, ,000, 900 and that
Great Britain had agreed to pay SILL
OOO, 900 900, is considered by McKellar
as the most unworthy statement in
the entire article" and no statesman
should have uttered it,
The Senator points out that more
than two-thirds of the Sll 600 .OOO,OuU
is interest at the smallest OF rates that
Great Britain will pay within 62 years
from the date of settlement. II Great
Britain wishes TO borrow the money
from her own people and make cash
payment. she can get rid OF about tWo-
thirds of S11 ,000, coo 900"
McKellar also questions the wisdom
of the statement that "a prosperous
Europe Is worth more as a customer
than the entire foreign debt, which
Lord Snowden attributes to the Secre-
tary Of the Treasury-either Mr.. Mellon
or Mr.. Mills.
we gave them already half of these
debts" says the Senator, lin the settle
ments already made, and that did not
make Europe a better American Gus
toner. Then we gave them the mora
toriuun. and that did not make Europe
a better American customer. In my
Judgment, they (Europe) are going tt
buy where it is cheapest for them tC
buy and it is all poppycock to assert tt
the contrary"