The Bismarck tribune., 1933-12-18

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Facts on the Debts
The war debts seems to b pretty
much ot . dead issue In the United
1tates-at least In % far - the pub
DC Is concerned.
Inability Of the government to col
oect more than one-seventeenth Of
ths 3l53 900 900 due It last week, and
the failure OF the citisenry TO get ex-
cited about the fact. proves the point.
We shall hear plenty about It In
congress, Of course. but that viii
merely demonstrate what most Of Us
have always known. This u the fact
that congress usually u two years Or
more behind the people In matters Of
general concern.
Whether or not we should attempt
20 enforce collection Of the foreign
debts IL not now in issue. The gov
ornments Of Europe. with the single
exception Of Finland. have defaulted
on whole or In part. There u no
oeasible means Of collection. We are
tn the position Of any other creditor
whose debtor fails to pay when IN
obligation falls due. There have been
enany such Of Late and the condition
= not particularly exciting.
Tho fact that We face . hard
boiled condition u affairs, however,
1ustifies US In examining the situa-
Non to determine our present post
Zion. II il not as promising Is most
d u might suppose.
10 begin with, ths debts upon
which Europe has again defaulted are
termed war debts only - . matter
Of conveniencs. The designation =
grossly inaccurate, since much Of the
money was loaned after the armistice
for the rehabilitation Of European In
dustry. It Is important to get this
distinction In mind. because It has
great deal to do With our interna-
tional financial position. Had the
money been loaned and spent Tor
purely war purposes No should b .
great deal better Oft. even though
our chances Of collecting would b no
better than they are now.
Europe took the billions loaned to
her and spent some Of them for must-
needed improvements The rest oe
the money went into ordinary chan
nels Of commerce and finance and
much Of Il was used to buy the ap-
proximately 5000. 100000 In American
securities which now are held abroad.
~ late - 1891 ~ were loaning
money abroad and much Of Il came
right back 70 purchase interests In
American industry ct bargain prices.
Now. many Of the private . well
- practically N OF tho government
hebts are IN default and apparently
On the way to repudiation-umless
America's bankers loan moro money
Abroad With which to make payments.
Nhs effect has been 70 trade good
American credits for poor European
pnss. II puts us dangerously close to
being . debtor nation.
This situation can easily be brought
nbout by continued default On the
part d Europe. II W pay and they
- MOI, the now q money = a1 In
bne direction and The svsntual result
= inevitable.
| The serious effects which Z eredi-
lSor position would have upon our ma
tional financial and Industrial econ
lomy are well-nigh incalculahls. They
would mean surrender by tias United
Dtates of the one thing Il won ia the
War-finsncial indspsndenos of the
eest q the world.
It would seem that our ersat psi-
sats banking Leaders vers guilty of
other crimes - bed q worse than
those revealed By the current tnvesti-
cations into the realms q financial
piracy. They srs ukaly 70 b hsld
guilty In the near future ot a ofSsuss
which win scar thetr insensitivo souls
more seriously than their cuzTent e..
tigation BY public opinien. Ihsy have
just about convicted themselves Of
Grass stupidity. not 70 meutiou
treachery to tho nations wslfare-I
and their own.
Tried and Found Capablo
Recent reports q Christmas ssal
sales By various local vomans organ.
ixations prove tho manner n which
this humanitarian effort has taleeu
hold Of tho popular Imagination.
Thess ssalA . everyone knows, H.
panes tho battle aeainse tubeeeuloeis.
Ehay ars tho bu1waxk for - tine .
eSusade q humanity has ever Known,
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