Evening star., 1933-01-08
EVILS OF DEBTS DELAYS
/ MAY PROVE EXAGGERATED
u. S. Expecting Protracted Maneuvers,
but Europe Has Concrete Plans to
Present After March 4.

! because, unlike the other three nations
! she has very immediate material reasons
! for desiring not to offend financial in
terests in the United States. Neverthe-
less, while it was an easy gesture to
/ pay an 1nstallment of Sl,500 900 in De-
cember, the next bill will be more than
twenty times as large and Italy cannot
afford to purchase American applause
at such a price.
still unsettled, the four larger debtors
will default. Before that time the
largest offer any will make is 10 cents
on dollar, nor will any one Of the four
make any proposals in the matter of
tarld or disarmament. Great Britain
will not make any tariff proposals be-
! cause her hands are tied by the Ottawa
agreements and, in addition, she al
ready buys more than twice as much
as she sells in the United States.
Hold Issues InSeparable.
France will make no disarmament
concession because the French have
steadily maintained that debts and
disarmament are separate questions and
no progress can be made toward the re-
duction of ornaments until the ques-
ton of security has been dealt with
Thus an American request for French
reduction in army or navy would meet
with a French demand for guarantees
in addition to debt cancellation. AS
for tariff concessions, the French, like
the British, buy more than they sell
in America.
Conceivably the British, if furnished
with certain American and French
assurances. would consider resumption
of the gold standard And it seems to
be generally accepted that, until Brit
ain is back on the gold standard, her
competitors in the world market will
suffer. But we and the French would
have to furnish the gold to put Britain
back and keep her there.
The idea that after March 4 Presi-
dent Roosevelt, through his personal
or diplomatic agents, is going to carry
on nice quiet conversations with Paris,
London, Rome and Brussels, trade in
debt schedules for tariff schedules and
set arms reduction against debt reduc-
ton always with an eye to the indi-
vidual status of the several debtor ma
tons, is as absurd as it is prevalent.
1t is almost as absurd as the conception
of fact-finding commission to find
out the fact that everyone in Europe
knows, namely, that the war debtors
have finished paying.
Believes Payments Are Ended.
When the French recently defaulted
and the British paid in gold. scorning
all advantageous employment of Ameri-
can bonds with their incidental saving
of $4,000 900, both were attempting in
their own characteristic ways to bring
home to the American Congress and
public the basic fact that the debt pay
ing episode had come to an end. And
of our IL European debtor nations
followed the French rather than the
British course.
But it must be obvious that, knowing
what they intend to offer, the Euro
pean debtors do not need any long time
to carry on discussions with Washing
ton. If Washington had listened to
their proposals for a moratorium last
month they would have been ready with
their proposals before January was
over. Little by little, too, the idea is
gaining strength abroad that the Ameri-
can Congress would be better satisfied if
the European debtor defaulted than if
the problem were laid to the door Of
the domestic politician.
Just now it is a frequent experience
around the Capitol to hear France de-
nounced because of the default while
Britain is praised because of payment.
But two months from now when it be-
comes clear that, having paid, Britain
Is asking for 80 per cent cut in further
payments, then the tune will be changed
suddenly and sharply For what the
Congress has in mind to do for Britain
in reward for recent payment and in
recognition of present difficulties, is at
most an insignificant reduction tied I'D
with tariff concessions and naval re-
ductions.
Won't Make Concessions.
AS for the French, Congress is re-
solved to make no concessions whatever
to them, and the frequent phrase is.
Cant we fird a way to raise the
French bill?" But having defaulted
once already, at least temporarily, the
French have tested out the dangers of
THIS course. And such word as reaches
me from Paris points to ultimate and
hnaI default after June Is, if the
french bill is not brought down to q
Level which will not exceed French re-
turns under the Lausanne agreement.
What Is odd in Washington today Is
that, particularly in congressional cir
cles. there is as yet no real appreciation
OF the meaning of the crisis in Dscem-
per ana the actual default of z out
of IL debtor nations. Privately everv
member Of the diplomatic corps in
Washington, whether representing a
debtor or a neutral nation, knows and
says with great frankness that debt
payments are over. And with equal
frankness all agree that neither dis
armament nor tariff concessions can be
obtained in return for debt reductions
But Congress will not have it SO. 1t
is satisfied that the French default was
q temporary matter soon to be rectified
II expects payment on June Is, with at
most only minor reductions. And Eu-
ropean ideas on the subject are still
poiltlcaAy unheeded. That way lies
trouble Of costly kind.
(COpyriRht, 1Q22l