Evening star., 1933-01-25
Debtors Days in Court.

certainty when President Hoover and
President-elect Roosevelt agreed be-
tween them to invite Great Britain to
confer on her war debt some time after
March 4, other debtor nations, too, are
now to be given their respective days in
court at washington. AS might also
have been foreseen, only those will be
summoned who have squared their ac-
counts with the United States Treasury.
Countries that became in arrears after
December Is, 1882, will have to take
themselves out of the defaulting class
before they can avail themselves of the
opportunities about to be offered to
Great Britain, Italy, Czechoslovakia,
Lithuania, Finland and Latvia. Already,
1t is indicated, necessary steps to that
end are under consideration in France.
Doubtless her allies, Poland and Bel
gium, which aligned themselves with
the French in letting last months pay
ment remain in delinquency, will follow
their lead, If a restored Herriot gov
ernment or the existing Paul-Boncour
cabinet decides to redeem Frances
good name and signature at Wash
ington.
Apart from the basic fact that debt
reconsideration is on the way, the
American people will derive their great
est satisfaction from the circumstance
that the outgoing and incoming ad-
ministrations have buried the debt
hatchet. Accord that seemed remote
two months ago is today an accom-
plshed fact. Perhaps complete prec-
edent is now being established by the
conduct, through Republican and re-
firing Secretary of State, of diplomatic
negotiations on behalf of Democratic
President who will not be in Office for
another five or six weeks. Common
sense has won notable victory over
political partisanship.
The country should be clear on one
point-that the reconsideration of the
war debts now assured does not neces-
sarily mean that they are to be revised
downward. It is, of course, the debtors
undisguised hope that semi-cancellation
will in fact be the result of the forth
coming conferences in Washington, else
they would not have been sought. Great
Britain's expectations were fully exposed
by Chancellor Of the Exchequer Cham
berlain last night. She will specify that
the Washington settlement, besides
being final, will be for a sum so small
that it will not necessitate reclamation
OF German reparations. Nor should
sight be lost of the fact, either in Eu-
rope or here at home, that Congress in
the last analysis is the final arbiter of
the debts. The Roosevelt administra-
tion may negotiate and even reach con-
clusions. But these will be void until
ratified by House and Senate.
The prospect of ratification will be
immensely enhanced if it can be shown
that any concessions to our debtors are
matched by definitely tangible benefits
to the United States. The State De-
partment yesterday, in announcing that
it is authorized, on Gov. Roosevelt's be-
half, to say that debtor nations repre-
sentatives will be received at Washing
ton, emphasizes that conversations with
them in every case must be concur
rent with and conditioned upon discus
sion Of world economic problems"
It will be noted that this carefully
selected phraseology deletes all refer
ences to the old capacity to pay" for
mula, under which in the past Amer
ican-European debt negotiations have
proceeded. Instead, though the State
Department does not say so in so many
words, Uncle Sam will take his stand
on the "quid pro quo" basis, the give
and-take system from which, when
fair-minded men get together, there
emerges neither victor nor vanquished
Congress, acting for the country, will
have to be shown that not all of the
giving, and none Of the taking, Is on
Americas partcbefore House and Senate
can be expected to approve such agree
ments as may be effected at Washing
ton. The European debtors will be re-
ceived separately" and not together.
That disposes at once, and effectually.
of the united front" bogey with which
some fearsome American souls have
been terrifying themselves and the
country at large.