Evening star., 1933-01-22
Reviving Interest Abroad in Collecting
Debts D Defaultedby Some American States

lands only last year by the Amsterdam
Stock Exchange The circular empha-
sized particularly the debts alleged TO
be owed by the State of Mississippi
ever since l042-to numerous Nether-
land citizens.
Those debts were declared legal by
the Mississippi Supreme Court, but
were subsequently outlawed by popular
referendums in the State and by an
amendment to the State constitution.
A report on the consequences in the
earliest days of the Mississippi original
defaults was made in l843 to the Sec
retary Of the Treasury Of the United
States by Col. William Robinson, who
had been commissioned by the Secre-
tary to try to borrow money for the
United States Government In Lon
don. Col. Robinson was unable
to secure the money. He report
ed that the defaults had ruined
American national credit and he added:
Many persons OF small incomes In
England have invested their whole es-
tates in American securities and the
failure to pay interest On those Sc
curities has left many families in utter
destitution"
1t is true that some Of the defaults
and regulations by American States
were popularity JUSTIFIED by illegalities
or unconstitutionalities in the contract
ing Of the loans. 1t is also true, how
ever, that some of the defaults and re-
quotations never by any argument con-
ceivable could be clothed with any such
Justification. Mr. Levinson's idea Is
to draw a sponge over the whole slate
of the reputation episode in our ma
tional history at the same moment
when we arrive at an ultimate accomo-
dation. with our governmental debtors
abroad.
1t is now thoroughly understood here
that the intergovernmental debts diff
Guilty must be put on the way toward
Qualification before the difficulties
which will arise in the International
Economic Conference of next Summer
can be surmounted or even approached.
This is partly because certain other
problems of debts will undoubtedly gain
attention in the course of the proceed
| lngs Of the conference itself. The con-
ference will in all probability consider,
for instance, the debts owed by default
ing governments in Europe and in
South America to investors all over the
world, including investors resident in
the States of our Union. Such investors
may be citizens Of defaulting State
governments among us, while at the
same time they are creditors of de-
faulting national governments in for
eign parts. In the International Eco
nomic Conference an attempt will be
made to organize sort of general in
ternational framework within which
the problem of the collecting of debts
from defaulting national governments
may be comparatively advanced with
equal justice to all creditors concerned.
The conference will also undoubtedly
address itself to the possibility of the
adoption Of monetary measures for the
enhancing of prices-which Is. only an
other way OF saying 'for the lighten-
ing of debts"
There are at least 40 bills in the
present session of Congress for the
Tightening of debts within the United
States through the reduction of the
face value of farm mortgages and
through the facilitation of Bankruptcy
proceedings for industrial and railroad
corporations and so on. While this
process of liquidation Is moving for
ward at home, the International Eco
nomic Conference will be endeavoring
In London to make it easier for debtors
to pay their debts by making it easier
Tor them to get more money for the
commodities which they produce. It
looks like a great year for debts and
debtors.
(Copyrisht, 1g33)