Evening star., 1932-07-31

'SOllblAuSA EAOAAA AAoN oeS'y
Government and will appoint delegates
to attend the economic conference.
Conference Place Uncertain.
The place where this conference will
be held is for the time being uncertain.
According to reports from Paris, there
was at one time the idea of holding it
in Washington. 1t was said in Europe.
after Senator Borahs speech, favoring
under certain circustanceS the cancel
lation of foreign debts, that Washington
would be the ideal place for such con-
ference. The argument of those favor
ing the Capital of the United States as
a meeting place of the economic ex-
perts of the world was that an open
discussion in the United States Of the
evils which are causing the present
DAVIS depression, might easily affect
favorably the American people and
change their attitude regarding the debt
question.
On account of American elections and
the general political situation in Eu-
rope it appears that London will be
selected as the meeting place for the
conference.
President Hoover is expected TO an
nounce shortly the names of the Amer
ican delegates at that conference.
Topics to Be Discussed.
The resolution passed at Lausanne
authorizing Premier Macdonald to call
this conference seems very inocuous.
The main questions which VIII be dis
cussed appear to have been taken from
the index of text book on economies
for the use of students of the first year.
Under the heading of Financial ques-
tions" the following problems will be
discussed: Monetary and credit policy,
exchange difficulties, the level of prices
and the movement of capital.
1t is possible, however, according to
those initiated in these "inocuouS con-
ferences" that the experts might inject
some more vital and practical problems
when they gather to frame the agenda
Of the conference.
It is now an open secret that a
number of prominent officials Of the
State and Treasury Departments as
we'll as an overwhelming number of
American bankers and economists are
of the opinion that the question OF a
drastic reduction of the allied debts
should be discussed with the debtor
nations before December Is, when 1t is
believed by most financial experts that
the principal debtor countries will de-
fault. Many officials and most of the
New York international bankers want
this reduction TO take place before the
debtor nations are forced to default.
It is believed in many quarters that
it is for this reason that officials of the
State Department refuse 70 reiterate
Secretary Stinnson's statement of a
month ago, about the position of the
administration regarding bartering war
debts for disarmament. 1t IS said tnat
such restatement of policy is un-
necessary but when high officials are
asked point blank whether. in view of
Senator Borah's recent speech, the point
Of view of the administration has been
changed, they refuse TO discuss this
matter.
The explanation of this unusual dis
cretion can be found in the fact that
the administration, convinced as 1t Is
that something ought to be done about
the debts" is unwilling to bring this
question in the limelght curing the
presidential campaign. On the other
hand, a reiteration of Secretary Slim
sons statement, which implied that the
Government of the United States will
not change It's point Of view as long as
the foreign powers spend billions on
armaments, may create an unfavorable
impression in Europe and cause diff
cultieS in France and Dermary.
The administration realized that for
the time being the popular sentiment in
this country is against any cancellation.
Hope for New Viewpoint.
Since the sensational speech of Sena-
tor Borah, advocating cancellation,
there is a certain amount Of hope in
the hearts of the cancellationists that
the oratorical powers of the Senator
from Idaho might swing public opinion
toward "a saner point Of view"
Senator Borah is known to express
forcefully his own opinions. He was
never known to make speeches because
somebody" had asked him to do so.
This is one of the rare occasions when
he and the administration see, for the
time being, at least, eye to eye, and the
administration has great hopes that his
cancellationist campaign will have the
desired effect on the American people.
Senator Borah is believed to plan an
extensive speaking tour throughout the
United States in favor of drastic reduc-
ton of debts The administration is
anxiously awaiting the results of such
a campaign. 1t wants to see how the
wind blows in the country before max
ing any other official statements about
war debts.
So far the effect Of the first speech
of the chairman of the Senate's Foreign
Relations Committee has been diSap-
pointing. But that does not mean that
it will continue to be SO.
Use Economic Argument.
It Is believed in many responsible
quarters that if the people of this
country can be convinced that the
shortest road to economic recovery is by