Evening star., 1933-06-15
Great Britain's Token" Payment


by President Roosevelt's statement is
sued yesterday with regard to the Brit
ish payment of token" Of $4,000, 900
on its war debt interest to the United
States. One is that the tender of a
smaller amount than that which is due
today Under the existing arrangement
is clear acknowledgement of the debt
itself" The other Is that the debt
question Is not included in the economic
conference now being held at London.
The note accompanying the tender of
a partial payment of the installment,
which amounts to $75,s5o, 900. definitely
states that 1t is to be considered "as
an acknowledgement Of the debt, pend
ing final settlement" This justifies
the Presidentf declaration that he has
no personal hGa-ation in saying that he
does not characterize the resultant
situation as default.
The Executive has no power to adjust
the debts due this country. Congress
alone can make curtailments, although
the President can negotiate. In De-
cember, 1881, the President sets forth,
Congress, in approving the moratorium
of June of that year, specifically de-
clared that the debts should not be
Cancelled or reduced. That is its latest
action in the premises. Unless and
until there should be further legislative
action all discussions with the debtor
nations must be advisory and tentative.
The President can, however, under his
constitutional power, as he states in his
announcement, entertain representa-
tions of the British government con-
cerning the entire debt settlement, and
that government has requested such an
opportunity. The President has sug-
gested to Great Britain that such repre-
sentations be made in Washington as
soon as convenient The expectation is
that there will be q series Of consulta-
tions here with representatives Of the
debtors nations separately. probably be-
ginning with Great Britain, either
through the diplomatic representatives
at this capital or special ENJOYS sent
here for that purpose. In his statement
issued yesterday the President does not
90 further than consideration OF the
British debt, none Of the others having
made any move at this time.
As q matter Of information to the
American public, the President says, he
makes it clear that the economic con-
ference now being held in London does
not include the debts question In its
program, the American delegates having
been instructed not to discuss debts
with the representatives Of any OF the
debtor governments. This is in accord
with the principle that the debts be
considered on their merits and separate
from other economic questions.
With Congress about to adjourn, prob
ably until January-save in the case
Of q failure to complete the economic
recovery program of the President In
terms satisfactory to him-the whole
matter of the debts as regards further
reduction or possibly cancellation is
necessarily postponed for at least six
months Meanwhile payments will be
due from the other debtor nations than
Great Britain. Likewise the economic
conference at London will have ended
its sessions. and although the matter Of
the debts is excluded from its agenda
it will remain factor to persist possibly
even to the point of making more diff
cult any advance in legislative sentiment
toward compromise or settlement.
The ugly word repudiation is being
avoided, but it Is still echoing from
earlier utterance and will probably be
repeated. The people Of the United
States do not wish to be rated as ruth
less creditors, but it is evident from
the continued opposition in Congress to
the cancellation Of the debts that they
are not now disposed to forgive these
obligations as a whole or even in large
part.