Evening star., 1933-02-12
u. S. LEADERS FIRM
FOR DEBT BARGAIN
Lewis, Mills, Rainey and
StraWn Demand Conces.
sions From Europe.

The American reaction to European
proposals for settling the war debt
problem is q clear cut capitalization OF
demands that Europe be prepared to
make concessions in return for any
modification of the debt agreements.
This was reflected yesterday in express
sions from both sides of the political
system at the Capital, as well As from
organized American business.
Senator Lewis, Democrat, Of Illinois,
in q speech in the Senate, called for
the cancellation of plans for the Brit
ish debt review at the beginning Of the
be confirmed oficially that the British
have instructed Sir Ronald Lindsay.
their Ambassador, to serve notice Eng
land centemplates no quid pro quo.
Secretary of the Treasury Mills. in .
speech in Kansas City, Mo, declared
.1'the American people are entitled to
compensatory advantages for sacrifices
they may be called upon to make" In
the face of British of1lcial intimations
Of unwillingess to bargain for debt re-
duction, President Hoovers chief fiscal
officer insisted that ''the debtor nations
can fairly be asked to make definite
intended to remove the barriers which
now stand in the way Of returning
prosperity"
Lump-sum Plan Assailed.
Representative Rainey, Democratic
leader of the House. speaking at the
banquet Of the Washington College of
Law at the Mayfower Hotel, assailed as
unacceptable the European suggestions
for = lump-sum settlement Of the entire
European obligation of about $l1 ,000,-
000,0 900 on q 10 per cent basis.
In view Of dispatches that Europe will
ask the United States to take that or
nothing, Mr.. Rainey warned that re-
pudiation would be IAN unfriendly act"
sure to be followed by adequate meas
tires Of retaliation"
The belief of organized business that
any fair settlement should assure ac-
cess OF American goods to European
markets "on fair competitive terms"
was voiced by Silas H. Strawn, former
president Of the United States Chamber
OF Commerce, in radio address broad
cast from Chicago.
Rainey, in his address, pointed out
that the United States held French
bonds to value OF more than $3,000,-
00O,OO0 rs result of financial grange
ments made during the World War. He
said there was nothing to prevent the
United States selling these bonds on the
French market, or anywhere else, at any
time. provided they were sold for the
purchase price.
Since the same arrangement extended
to other allied countries, the Democratic
leaders said 1t would be difficult for any
debtor nation Ito escape permanently
Its obligation to u.s."
Reflect Sentiment.
The views, coming from four differ
ent quarters, were regarded as repre-
senting the prevailing opinion in the
United States. Efforts are under way
on pehaf OF both President Hoover and
president-elect Roosevelt to. make 1t
clear to the British and also to the
other European debtor governments
tnat an adamant. stand against making
concessions would result In q breakdown
OF the renewed debt negotiations.
While neither Senator Lewis nor Rep
fesentaCve Rainey Is regarded as speak
ing for the Roosevelt administration.
both are supporters OF. the incoming
president. Rainey's attitude, while Of
fering small encouragement to EUROPE.
does represent Z; considerable modifica-
ton of his previous stand against having
any further debt dealings whatever with
europe, In that respect, he reflected
the gradual change In congressional
sentiment. -, - -
Senator Lewis's speech carried the
voice OF q militant extreme bloc in
congress, corresponding to the Senate
ilrreconcilables In the League Of Nations
struggle, which is skeptical Of the forth
coming debt discussions and is prepared
70 trepudiate them upon slight provoca-
In the Senate yesterday, he interpre-
TED the reported attitude Of England and
france as confronting us with the au-
oacious proposition rarely paralleIed in
the history Of q debtor to his creditor
that we come to you with proposition
framed and shaped, to our advantage,
anu 70 let you know in the beginning
tnat there be neither concession nor
qualification, and to let YOU know that
.ne conference, 50 far as 1t Is called to
De such. u to be on our part the preserf-
taaon OF that which We have already
oecided, concluded, fixed and estab-
nshed. ~. :, -,
Would Avert New Hatred.
Whatever may be its effect upon
you or your commerce is not in our
consideration, Mr.. United States. What
ever effect it may have upon your. peo-
PIE, and the way they will react to
tnelr representative, we do not know
nor pause we to consider. We merely
announce to the world that we are NOV
ing toward you with the assumption that
we, as debtors, will dictate to the credi-
tor and are confident that in our die
tation We bear the means by which we
can enforce our visit upon the United
states In some commercial aspects-the
punishment-if It Is declined"
senator Lewis proposed that It ''be
aseertained now whether these decla-
rations on the part. Of these eminent
representatives have been made; sec
ond, as having been made, If it is their
object, to- adhere to- them, and II such
Is true, let US not multiply these preju-
dices by another assemblage which
breaks out In some frame of hatred"
In his radio address, Mr.. Strawn
said poll Of the chambers membership
showed an unanimous belief that ne
gotiations should be based on proposals
including: f -. -.
Authorization of further temporary
postponement Of payments where debt
or countries cannot pay now requiring
that any modification be conditioned on
definite provisions assuring American
goods access to markets on fair COM
petitive terms; that any modification
should be conditioned on reduction in
expenditures for armaments, and reiec-
tion OF proposals that the United States
cancel war debts.
cIJ1NInC 10 nrNINInkI