The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1933-03-03
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National Topics Interpreted Il f1FAITtlf64
by William BrucEart %1@I3Ifl
by William Bruclkart-

WaSnlngtOn.-AS ulScuSsioHS PRIV
coed over the question of what to do
about the foreign
How Foreign debts, it becomes
Debts Hit You quite apparent that
there is a great deal
of confusion existing on the subject
throughout the country. 1t seems
that many persons are unable to I'M
tangle the skein or to get a clear idea
of how the influence of the debt ques-
ton carries on through to individuals.
/ was privileged to see letter re-
ceived few days ago by member or
the house of representatives. Because
of the earnest desire Of the individual
who wrote that letter to learn some
thing about the problem, / think he
must be typical Of great many other
persons throughout the country.
IF could understand how the debt
question affects me-" he wrote, Il
think I might be interested In all OF
this argument. AS it is, / confess my
inability to determine whether ought
to favor or oppose readjustment of the
debts"
Let me say at the outset, ] believe
those who favor scaling down the for
eign debts are exaggerating the bene-
fits which they are saying will result,
and that those who are unalterably
opposed are being a little unfair In
some of the statements they make.
Proponents Of debt reduction by the
United States claim there will be a
revival of foreign trade, so the farm
surplus will be saleable and the prod
ucts of factories will be marketable
again, If the foreign nations owing
money to the United States are let off
in the payment of some of 1t. They
are claiming that American banking
conditions would be improved by debt
reduction, because it is well known
many of our banks hold foreign gov
eminent bonds in large amounts. Ii
the debts to the United States govern
ment are scaled down, Of course, the
private holdings of the foreign bonds
naturally become worth more because
there is better chance for their pay
ment.
1t is undoubtedly true that banking
conditions would be eased here and
that a great many individuals who
have invested some of their savings in
foreign bonds would benefit by any
debt reduction. The circumstance is
this: there is only so much revenue
available to any one of the foreign
governments, and when part of that
governments obligations have been
released, the chances are the others
will be paid.
The same holds true as regards the
revival of foreign markets. When
their governments debts have been re-
duced to some extent, manufacturers
and other lines of business in that
country recognize the probability of
reduction In their taxes and some
greater freedom in business dealings.
To that extent then those potential
purchasers feel able to enter the mar
ket and buy the usual amount of goods
from America. And, Of course, il
there is demand for goods from our
farms and our factories, prices rise,
employment increases and the whole
country profits.
On the other side of the picture, the
opponents of debt reduction set forth
an insistent cry that reduction of the
foreign debts is simply transferring
those debts to the backs Of American
taxpayers" BY that, they mean the
United States government, having bor-
rowed the money originally from its
own citizens, has to pay them as the
bonds become due. The government
can get money only by taxation.
Opponents of debt reduction say,
too, that there is no assurance of any
revival of foreign trade with the Unit
ed States. They point to the British
empire agreement Of last year, giving
preference to products Of their pro-
vinces and dominions, and to the trade
restrictions now in effect or projected
among numerous other nations.
These are the general tenor of the
arguments. They vary in different
sections of the country, for undoubt-
edly the products of some parts Of the
country are ordinarily in greater de-
mand from foreign lands than are 9TH
ers. So it is obvious how many vari-
atoms may be found.
But the stake is so great that nat
urally there is being used every influ-
ence available. The
Vast Sum Owed total of the debts
United States owed the Unit d
States is ST.. 7S6,271,-
2S1, an enormous sum of money and an
amount constituting more than half of
our own governments national debt.
In other words, If the foreign debts
were paid at once, our government
could reduce its own national debt to
about $4,000. 100000.
Here are the names of the debtor
nations and the amounts they owe:
austria ZS,15Z,Zl7
Belgium ................ 06,555, 900
CZechoslovakia .......... 165,571,023
Esthonia ................. 17.203,743
Finland ................. 8,S03,295
France ................. 3.921,547.s32
ireat Britain ............ 4,499 $50, 900
freeze .................. 32,120,3S6
hungary ................. 1894, OF
tally ................... 1907. 406, 125
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