The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-11-21
EUROPE CLINKS
BLOODY BONES
IN DEBT SCARE
World Ruin Picture |,
Painted to Persuade
U. S. to Yield. /.
BY WILLIAM PHILIP SIMMS
Scripps-HOward Foreign Editor


WASHINGTON, Nov. 21.-Europe
is preparing to pull a 'raw-head-
and bloody bones" on Uncle Sam
and bring about almost unheard of
pressure, both moral and economic,
to make him yield on the war debts
question.
Private citizens in this country
have investments abroad amounting
to almost three times the present
value" Of the war debts in their en-
tirety. These may be wiped out,
European spokesman now warn,
unless the United States listens to
reason.
These private investments of the
people of the United States amount
to approximately $4,000, 1000 900.
The present value" of the war
debts, at 5 per cent, amounts to
some $780, 100000. OF the total
private investment abroad, 80 per
cent is in Europe and, of this, about
$4,000, 100000 is in Germany alone.
Put All Loan on U. S.
Refusal of the United States dras-
tically to scale down the war debts,
Europeans now assert, will endanger
not only Germany's ability to pay
these private obligations, but cripple
the whole world and imperil such
investments everywhere.
If the United States refuses to re-
duce the war debts to the allies, it is
stated, the allies, in turn, will refuse
to ratify the Lausanne agreement
virtually canceling German repara-
tionS.
If Germany is called on to pay
the average annual Young plan in
stallment, amounting to little less
than half billion dollars, she prob
ably would collapse, forever making
it impossible for her to meet any of
her present obligations, public or
private.
Furthermore, it is pointed out,
Germany is the keystone of Europe
If she goes down, Europe will &C
down with her, and with Europe
W44A u doll UIlG WOIlQ.
Won't DisIodge Keystone
The economic fate of mankind
according to Europe, therefore, is in
the hands of the United States, tc
make or mar depending upon what
is done with the war debts.
There is reason to believe, how
ever, that Great Britain and France
the leaders in the new war debts
revision drive, will hesitate before
they press Germany too hard.
To do so would diSlodge the key
stone. Like Sampson these two
countries would destroy themselves
while destroying others.
For bargaining purposes, they
may threaten to scrap the Lausanne
agreement, and return to the Young
plan.
But in the realm of practical
politics it is an open secret that
whether they do or don't, Germany
is not going to pay.
She can't. Even if she could, her
population would not let her.
Can't Go Too Far
Germans are almost 100 per cent
against paying any more repara-
tons, Lausanne agreement or no
Lausanne agreement. Every politi-
cal faction in the country is on
record against it, from Junker to
Communist.
Were the present government at
Berlin to agree to further payments,
Adolf Hitler and his $4,000 900 Nazis
would overthrow it within twenty
four hours.
If Hitler comes into power, he is
pledged not only not to pay any
more tribute" to France and the
other allies, but to scrap the whole
treaty of Versailles.
Thus, observers are convinced
Britain, France and the other
debtor nations may seek to use the
present unhappy plight of Europe
to throw scare into Uncle Sam.
but they have too much at stake
themselves to carry the thing too
far. The situation is far too dan
gerouS to play with.