The Waterbury Democrat., 1932-07-13

Icy was unchanged. This policy,
briefly, is mo cancellation, and coll
lection to the extent of capacity to
pay"
Yet many administration leaders
doubt that Europe, with the excep-
ton of a few countries, will pay
the 1928 debt installments to-
falling $4,000, 900. And many
more Of them are sure that the
grandchildren of present day Eng
lishmen, Frenchmen and Italians
are not going to pay for a war that
their forefathers fought. The debt
payments run for so more years.
The belief Is growing in some ad-
ministration quarters that settle
ment of the debt question may de-
pend on disarmament. !.
Time and again the state depart
ment and White House lhave denied
that American diplomats are, trying
to trade gold for sunken European
battleships and disbanded regi-
ments. Such a trade, one high ofii-
cial said recently, would be an in
suit to the debtor nations.
But some officials believe that the
average American shares Senator
Borah's view that as long as Eu-
AOP0 CdA 6PCAAu. OAAAAVAIH OdbtAO-
ships, artillery and Soldiers 1t can
pay millions on war debts. =
Indeed, the president Is un6er-'
stood to hold similar view. In shis
moratorium proposal a year ago he
said:
II wish further to add that while
this action has no bearing on the
conference for limitation of land
armament. I'VE trust that by this
evidence Of our desire to assist we
shall have contributed to the good
will which Is SO necessary for the
solution Of this major question"
Senator Johnson, who fought the
one-year moratorium tooth and nail
last December, shared the view that
the coming debt installment will
not be paid.
Four-fifths Of the private loans
made by the debtor nations have
been made by Great Britain and
most of. the rest by France. The
war debts are of course owed di-
rectly by the governments, while
these loans have been advanced by
private interests.
Great Britain loaned $3,427,319,-
600 abroad during the last six
years. This amount is only $1,000
100000 less than Britain's debt to
the United States. The United
States during the same period has
fioated foreign loans for $780,
| 100000 more than Britain.
OF British loans, approximately
go per cent went to finance pro-
jects within the British Empire,
| during 1880 alone Britons invested
about $350,000,000, in loans to di-
visions of the empire and $215,-
100000 to foreign nations.
France loaned $472,003,000 to
foreign nations during the years
1926-31 inclusive. Most of these
funds went to Poland. Bulgaria,
-Slovakia and other "mili-
tary" allies. Early this year France
loaned Czecho-Slovakia an addi-
tional $25,000,000 and gained val
liable military and economic adj
vantages in return.
The only direct loans made by
governments of debtor nations were
small trade credit to Albania by
Italy and similar credit to Russia
| by Germany.
In 1880 Italy subscribed $780,
900 to the 100000. 900 information
al loan made to Germany, while
Belgium fioated $7.250.000 Of the
issue. The United States, Great Bfi-
tain, and France, in the order nam
ed were. as usual the heaviest con-
| tributors' to the loan.
During 1881, while the Hoover
one-year moratorium on war debts
was in effect. France lent $780,
| 100000 and Great Britain s$224,-
100000 to foreign nations. During
the same year the United States
took only $22S.Ss4.500 in foreign
offerings.