The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-06-15
THURSDAY. JUNE IS. 1888.
DEBT DELAY

- American QedQlOCk OfeI Wal
debts Publication of the latest London and
washington notes reveals that each govern
ment is speaking chiefly for political effect
at home instead Of seriously attempting set
Element
Prime Minister Ramsay Macdonald made
bad blunder when he broke his promise not
to inject the debt issue into the world
economic conference. That, plus other British
statements, has intensified congressional
prejudices and made the task of handling the
problem here more difficult.
But larger blame attaches to the President
for his evasion OF this issue.
Obviously. the President in his heroic fight
for domestic recovery, has had little time
since March to mature debt policy. But that
opportunity was given to him early last
winter when President Hoover offered to
name commission of his selection. Mr..
Roosevelt at that time held official debt con-
versations with the British ambassador, so
1t was no mere technical lack of authority
which caused him to postpone conclusive ne
gotiations against the advice of those who
foresaw how busy he would be after March 4.
Despite his statement last November that
any debtor has right to approach creditor
at any time for debt readjustment, despite
his December and January negotiations with
the British ambassador and his conversations
in April with Prime Minister Macdonald Mr..
Roosevelt continues to delay a settlement
Indeed, in his press statement wednesday
night, the President said: 1T seems the part
of fairness and wisdom to postpone formal
representations on the debt subject until
later"
On the contrary, it seems neither fair nor
wise to delay. The British made their De-
cember payment on the specific understand
ing that it was provisional and that a final
settlement would be attempted before the June
payment was due.
To that extent they properly can feel they
have been tricked. They resent it and have
a right to resent it. Now we rub it in by
proposing further indefinite delay
The Presidents gracious Interpretation that
the British partial payment of S1O,OO0OOO on
the $75950,00O due today does not constitute
a legal default, does not cancel his failure to
grant their repeated requests for definite and
early negotiations.
Congress, of course, is the rub But the
President has not been afraid to 20 to the
mat with congress on other big issues; why on
this one? AS the President himself SAYS in
in his public statement and in his note to
Great Britain, debt revision legally is in the
hands of congress, and congress specifically
has set forth that the debt should not be
cancelled or reduced"
The only way to remove that prohibition is
by congressional action. which in turn can
be achieved only by the President carrying
the fight for conditional reduction to con-
gress and winning that fight
The method of indirection and evasion was
tried by President Hoover and failed In the
summer Of 1881, when the international situa-
ton demanded debt relief, just as now PreSi-
dent Hoover evaded his responsibility of pre-
senting the matter to congress, allowed con-
gress to adjourn, and then proceed with
out constitutional authority to grant debt
moratorium
Those questionable tactics were responsible
in large part to the defiant attitude of con-
gress the following December It ratified the
unauthorized and extra-legal moratorium as
an accomplished fact of six months standing:
but at the same time it voted against any
future debt reduction.
Those disastrous Hooverian tactics are
about to be repeated. Congress in session on
June Is with debtors in partial and in COM
plete default is to adjourn without action
on debts. Some time in the autumn the
President may negotiate a settlement, which
can not be effective until accepted by congress-
But meanwhile the Dec Is payment day
will have arrived, still without ample con-
gressional opportunity to act, still without
our debtors having any definite assurance of
their status, and still without removing war
debts as a continuing cause of world depres-
sion.
We believe the President, following pre-
cedent, should appoint a bipartisan commits
sion, including representatives of congress. to
hear the pleas of our debtors, and that con-
gresS should be called back in special ses-
sion to receive and act upon any agreements
recommended by the President and commits
sion.
We believe that congress will deal fairly
with the debt issue, provided congress is
dealt with fairly