The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-10-03
BY WILLIAM PHILIP sINrMs

b1 WILLIAM PHILIP S1MMS
By Scripps-Hoioard Newspaper Auionce
WASHINGTON, Oct. S.-Involved
in the fateful talks beginning here
this week between British and
Americans. is the future of s5o,oOO,-
100000 worth of debts, public and
private, principal and interest, due
the people of this country.
Fifty billion dollars would have
bought the whole of the United
States, lock, stock and barrel less
than sixty years ago. Today it
would buy New York City, New York
State and practically all of New
England. 1t is lot of money.
Negotiations will start with the
arrival here Thursday of Sir Fred
eriCk Leith-RoSS, financial adviser
to the British government; Sir
Ronald Lindsay, British ambassador
to the United States, and T. K.
Bewley, British treasury expert.
The outcome will be reported to
President Roosevelt, who in turn
will submit it to congress for It's in
formation and consideration" Only
congress can change either the
amount or the manner of payment
of the war debts.
Debt Totals 22 Billions
The British desire cancellation.
Convinced, however, that cancella-
ton is out of the question, they will
seek new settlement based upon
the Lausanne agreement of 1882.
The allies agreed at Lausanne to
accept from Germany approximate
ly 10 cents on the dollar as payment
in full of reparations-provided the
United States would do as much for
them.
Should the British succeed in OBJ
tanning such reduction from the
United States, France, Italy, Belgium
and more than a dozen other Euro
pean nations would hurry to Wash
ington to demand similar treatment.
The total European war debt,
principal and interest, amounts to a
little more than 100000, 900. But
Europe does not intend to offer 10
cents on the dollar on this huge
| total. Far from it.
May Reject Offer
The Lausanne agreement would
bring the allies a total Of only
S7140OO,0OO - the present cash
value" of PREPARATION and the
allies, in turn, do not want to pay
the United States in the aggregate
any more than they receive from
/ Germany.
Great Britain, for example, owes
the United States nearly $4,000 000,-
900 principal. Interest, spread out
over almost sixty years, would
amount to another $6,6O0,000, 900,
making a grand total of $11 ,000,-
900 900.
THE present cash value" Of the
British principal, on basis of 5
per cent interest, would be about
$500, 100000, and 10 per cent Of
that is 35O.OOO,OOO
Great Britain, therefore Is pre-
pared to hand over to the United
States some such sum as payment
in full. But as congress almost
certainly emphatically will turn
down any such offer, and as Britain
will be so informed, she may be
expected to try some variation She
even may boost the ante a little.
Britain Against Reputation
There is talk that she may offer
as much as $1,000, 100000 cash-if
she can float sufficient bonds in the
United States to make the payment
That Is to say If she can borrow the
money from us to pay us.
While Britain does not intend to
pay the debt as it stands, neither
does she intend to default or re-
pudiate If she can get around it,.
She does not want black mark
against her record.
Default or reputation, however, Is
clearly an alternative. And If Bri-
tain repudiates, the other debtor ma
tons will do likewise, telling each
other it is no disgrace. Had they
not tried to pay, they would say,
and been turned down by Uncle
Shylock?
Reputation Of war debts would
endanger the worlds whole foreign
debt structure. The first repudi-
alton is the hardest. The second
does not hurt much. After that,
it becomes a habit.