The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-09-01
BORAH WILLING
TO SWAP DEBTS
FOR PROSPERITY
6 FayorS Cancellation of War
Loans If 1t Will Help
u. S. Business.
BY WILLIAM PHILIP SINIMS
Soripps- Howard Foreign Editor

BY WILLIAM PHILIP SIMMS
soripps-HoWard Foreign Editor
If the people of the United States
are merely to be left holding the
bag for Europe-and are not to re-
ceive any benefit whatever in re-
turn for reducing or canceling the
war debts-then there is no sense in
doing anything about the debts at
all. Let Europe repudiate.
e Such, in effect, is the attitude OF
a growing number Of Americans
among them Senator William E.
Borah Rep., Idaho. On the other
hand, speaking for himself and this
group, he frankly states:
If l could use the debts to effect
a settlement of those war problems,
which would open the markets of
the world to the American farmer
and the American factory-in other
words, If 1 could purchase the
prosperity Of the American people
by reducing or canceling these
debts-I would not hesitate to make
the purchase"
Millions Depend on Factories
Connection between the man in
the street and the coming debt re-
vision is very close, whether he is
out of job and looking for one,
Or has a job and wants to keep it.
There are 10000 manufacturing
establishments in this country, ac-
cording to the latest official count.
They employ 100000 people,
whose pay envelopes aggregate S15,-
000,000,000 year. Including their
families, at least 100000 citizens
are directly dependent upon whether
these industrial wheels keep turn
ing.
. Similarly more than 100000
people are living on farms, absolute
ly at the mercy Of world prices for
commodities.
Normally the factory output is
valued at S70,000,0O0 1000. The farm
output is valued at $16,000,00,0 900.
In good times, therefore, the gross
value Of the products of farm and
factory foots up to $86,OO0,0OO a
year.
Output Value Falls Far
At present, however, the story is
vastly different. Production values
have fallen approximately two
thirds. That is to say, the total
value Of the farm and factory out
put today is hardly more than $780,
00O,OOO,OOO.
Thus these two groups of Ameri-
cans alone-the backbone of the ma
tion-are absorbing a gross revenue
cut of about $50,000,0 100000 a year
And as the rest of the people-store-
Keepers, clerks, builders, bankers,
realtors, railroaderS, etc.-are al
most 100 per cent dependent upon
agricultural and industrial prosper
ity, the entire population is involved
deeply.
If you happen to be out of Job,
that is why. If you have had a pay
cut, that is why. If you are afraid
OF losing your job, that is why. If
your business has slumped almost to
the vanishing point, that is why.
Millions Are JObIess
From eight to ten million people
IN this country are jobless. More
than ten million farmers face ruin.
Approximately 25,000,000 Americans
Will need help this winter. And
mostly because of this.
Obviously any change in the
world situation which would i'm
prove conditions permanently even
ever so slightly, literally would be
worth billions to the people of the
United States.
Each 10 per cent improvement in
basic conditions would put a mil
lion unemployed back to work. It
would add five or six billion dollars
to the purchasing power of the
masses.
Demand would increase. Bust
ness would get better. Jobs would
be more secure. Commodity, Secur-
ty and property values would be
enhanced by tens of millions.
Europe owes the United States on
war debts approximately $3.50, 000, 900
year, on an average. Soon she
will demand revision or cancella-
ton. Much depends upon how the
United States meets that demand.
From Bad to Worse
One way to meet it is to insist
on payment in full, regardless. That
would almost certainly bring re-
pudiation. We would get absolute
ly nothing. The world situation
would simply go from bad to worse.
Another way is to use the debts
as a lever to bring about a world
wide settlement of the taX-devour-
ing, fearbreeding disarmament
deadlock, stop the ornaments race
and facilitate a European under
standing on the other major war
time problems which are blocking
the return of prosperity.
Europe is not going to pay the
war debts as they now stand. To
escape the onus of reputation,
however, she would make many
valuable concessions.
Thus an intelligent carefully
weighted, reahSt handling of the
situation could be made to bring
Isthe American people ample quid
pro quo for whatever sacrifices they
may be called upon to make.
Any other course would net them
zero.
Next - "War Debts Payments