The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-06-08

z# W conference opens,
~ and nobody can
~ ltl have any illusions
about the effect |
r;., on the conference |
of failure to ar
rive at some dignified solution.
No one will have much hope that |
nations can make permanent agree
ments upon such complicated mat
ters as the currency, gold silver
and tariffs, if they haven't had the
wit to make temporary agreement
on one installment Of a debt.
It is therefore, absolutely essential
that the June Is payment be dealt
with in such way as to avoid all
international bitterness and con-
fusion.
TTOW might this be done? We
L i may rule out at once two
theoretically possible solutions. There
can be no final revision and settle
ment of the war debts before next
Thursday There is not time for
that. There is not authority for
that. On neither side is there the
will to do it.
The Europeans do not know what
they are prepared to offer in final
settlement and we do not know
what we are prepared to accept. |
1t is no less true that the June 10
payment will not be made just be-
cause legally it is due
The European debtors have made
up their minds that they will not,
or can not, carry out the original
contracts. They are all agreed on
that. The British paid in December |
and the French did not; the only |
difference between them is that the
British have said they would default |
if the settlement was not revised, |
whereas the French have said they
would defer payments until there is
a revision.
Revision. being impossible before
June 10, but inevitable at some time
in the future, the problem is how to |
avoid breakdown over next weeks |
payment
IF we insist on payment &C
Il cording to the letter of the |
bond. there will be a breakdown.
If the Europeans refuse payment, |
there will be a breakdown. They |
will be in default, and we shall not |
only get no payment on June Is, but |
not payment at any time thereafter.
In other words, insistence on the |
letter of the bond will destroy the |
bond.
There is, however, no reason why |
the governments, which have much |
more important business to do,
should entangle themselves up
hopelessly
The principle of a solution is quite
simple. It is for the debtors to
recognize the legality of the obliga
ton pending a revision, and for
the creditor, while revision is being |
negotiated, to refrain from de-
handing that payment be made.
How can the debtors recognize |
their obligation? Simply by say
ing that they recognize it. We |
can not ask or hope to obtain a
that they are not repudiating.
How can we refrain from de- |
handing the payment? Simply by
saying that we shall not consider
it a default if, with the legal OBJ
legation recognized, the payments |
are postponed pending the negotia-
ton of a new settlement
Failure to pay is not in itself re-
pudiation. There is no default if
the creditor refuses to Stigmatize |
nonpayment as a default. A post |
ponement, without prejudice either |
to our rights under the contracts or !
to the right of the Europeans to a !
review and revision of the contracts. |
is the honorable and practicable |
way out of the immediate diff
Guilty.
TINE question then arises as to
Il who should take the initiative in
proposing a poStponement without |
prejudice. The magnanimous course |
would be for our government to take |
the initiative, for the President to /
address a note to the debtors saying /
that since he publicly has recognized /
their right to have the settlements /
reviewed, since the time has been /
too short to complete the review, /
since a final settlement should be /
considered only in the light of the |
whole program of international re- /
construction, poStponment of the /
June Is payment would not be con-
Sidered as impairing the rights of /
either debtor or creditor.
Such a note would believe, have |
enormous power to create good will |
and confidence throughout the |
world No single thing We could do !
could do more to give men faith in
the word economic conference.
We should do we'll to consider the /
wisdom of such a move, remember I
, ing that "magnanimity in politics I
is not seldom the truest wisdom, and |
a great empire and little minds go |
i'll together" Taking to heart, too |
those other great words in Burke'S I
speech on Cancellation with Amer
lea: The question for me is. not d" -
what a lawyer tells me I may do, /
but what humanity. reason and JUS
tice tells me ought to do"
Copyright 1881
Henna comes from the leaves of |
-. u.