Evening star., 1933-02-08
BORAH JOINS FIGHT
0NLUMP PAYMENT
Of ALL WAR DEBTS.
Idaho Senator Insists That
Currency Adjustment Must
Be included.
RAINEY CALLS PLAN
TO SETTLE "NONSENSE"
Democratic Leader Cites Small
Proportion of Indebtedness of
Europe Is Due to U. S.

BY the Associated Press
Chairman Borah of the Senate For
eign Relations Committee today threw
his influence against a lump sum cash
settlement of the European war debts or
any other settlement that embraces no
trade concessions for this country.
Commenting on dispatches from
abroad that the British would propose
In the coming negotiations with Presi-
dent -elect Roosevelt a cash settlement
of between $3.50, 100000 and $2,OoO,-
100000 in payment for the 1,000,-
100000 of Europe's war obligations. the
idaho Senator in statement said:
II am not interested in any plan
which deals with the debts that does
not include the adjustment of the cur
rency question and certain other prob
lens which stand in the way of open
ing up world markets and restoring
trade and commerce.
"A lump sum payment would not do
us any good of a permanent nature
unless we can find markets and restore
the purchasing power of the people"
Called "Sheer Nonsense"
On the House side of the Capitol, the
Democratic leader, Rainey of Illinois.
called the proposal to offer lump sum
settlement of about 10 cents on a dollar
sheer nonsense"
THE American people won't stand
for it," he insisted. 1T is too bad that
England and France can't understand
that the United States borrowed the
money from its nationals to purchase
their war bonds SO they could continue
to exist"
Asked his opinion whether England
could float bond issue in this country
to raise money to pay on the lump sum,
Rainey told interviewers:
The American investors won't buy
the British bonds. They have been
stung enough on foreign bonds here"
OF England's outstanding bonded in
debtedness. he estimated only 265 per
cent was owed the United States, and
that of Frances bonded indebtedness
there was but 3.75 per cent owed the
United States.
why dent they try to get the
holders of the other bonds to cancel
their debtS?" he asked.
you hear lot of talk about the
United States having borrowed some
AAt4iC1 llOlli = dllCS 1Ql LllS xS@NOlQIlOA-
ary War and that we have not paid
it back" Rainey said. ITS not true.
We paid every cent back. end besides
lot of money stolen by the
French representative who was sup
posed to deliver the money to the
United States. 1t was all paid back
by about 1880"
Other Leaders Silent.
Other leaders were non-committal for
the most part, preferring to give Presi-
dent-elect Roosevelt free range.
The impression among those who did
speak was that dispatches from Great
Britain telling of a plan for lump
sum payment were in the nature Of a
"feeler," "trial balloon to test Amer
lean sentiment.
Meanwhile, Rumania was told that
President-elect Roosevelt will grant its
request for discussion of debts after the
British discussion has been completed.
Minister Davila called on Secretary
of State Stimson and was given this
reply to request submitted by him a
week ago.
The hearing is under conditions SINH
lar to those provided for the British
that is, debts and economic problems
are both to be dicussed.
IldS d NoS
here in June, of almost S64,000, 600
owed altogether.
Rumania has made all of its pay
ments and consequently is in the class
with Great Britain and other powers
which have not defaulted.
A report by special committee OF
the International Chamber of Com
merce published here, said that what
was needed for success of the World
Economic Conference was debts settle
ment as equally satisfactory" as the
Lausanne reparations agreement which
cut down German payments to about 10
cents on the dollar.
In most quarters the opinion was
held that Mr.. Roosevelt's intention of
dealing with each nation individually
would give the British scant opportunity
to bring forward a proposal on behalf
of all of them. Besides France failed
to pay its December Is installment and
is not in the favored class
The declaration of the International
Chamber Committee was:
AT Lausanne, a solution of the
reparation problem has been found.
1t needs to be completed by an equally
inter-governmental debts"
The two for II billion settlement, i'm
piled by the London reports would be
on a scale similar to that agreed upon
at Lausanne. where to all intents and
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