Evening star., 1933-01-22
BY WILLIAM HARD.
Debts of all sorts are again forging


to the foreground for Washingtons po-
litical consideration. These debts IN
clude domestic farm debts, domestic
railroad debts, domestic general cor
poration debts, debts owed by Iorelgn
governments to the United States Gov
ernment and also debts owed by iof,
eign governments to private Un!teo
States citizens.
That last variety of debts is now
occupying some of the attention OF the
State Department. With State Depart
ment encouragement an effort Is going
forward to organize "councll'-or the
like-of private representatives OF pr-
vate American investors owning foreign
governmental bonds which are in de-
fault or in threatened default.
This move by the United States Gov
ernment is greeted with applause py
the British Council Of Foreign Bond
holders" located in LONDON. The Brit
ish Council is a semi official body ere
ated by act of the British Parliament
and interested in trying to collect de-
faulted interest and defaulted pr1nci-
pal of debts owed to British investors
from governments in 26 countries, in
cluSing the United States.
The State governments in the United
States from which the British Council
has endeavored to make collections are
those of Alabama Arkansas, Florida.
Georgia, Louisiana, Mississippi, North
Carolina and South Carolina.
These State governmental debts
which have nothing to do with the
war between the States-were incurred
mainly in the course of local govern
mental promotion of banks and rail-
roads. The regulations of them,
rightful or wrong, began in 1912 and
terminated in 1884 The total p-inci-
pal involved is some $77000,00 Prin-
cipal plus interest at per cent would
bring the grand total sum in dispute
70 approximately 100000.
New notice has been focused upon
this particular question by Mr.. S. o.
Levinson of Chicago, author OF the
"Outlawry of War" and author OF re-
peated plans for the solution Of the
international debt problem. In COM
pany with other notable Chicagoans
Mr.. Levinson this week promulgated a
new plan for the quieting OF the debts
controversy between European govern
ments apd the United States Congress.
y ~
Mr.. Levinson proposes that we ac-
cept $1,350,000,000 in final settlement
of the debts owed to us by European
governments to which we advanced
money during and Immediately after
the Great War. The present face
value of those debts, in banking terms,
Mr. Levinson calculates as being
roughly-s5, 900 100000. He would ac-
cordingly have us settle with our debt
ors on q basis of Is cents on the
dollar
Many financial and political experts
here think that Mr.. Levinson Is too
optimistic. They think that his sue
cessful experience in the reorganiza-
ton of industrial and railroad cor
porations has inspired him perhaps
with an excessive confidence i'll nego-
tlatlons Tor the salyaglng or aSses.
Iney DOUBT IL our European doctors
Will eyer pay us as mucn as 90 cents
On the ooilar. Iney lncune TO pc
heve that " cents wouIu pe moe
accurate representation.
Others here think, contrariwise, that
Mr.. Levlnson Is giving away bat TOO
much beIorenano. 1ney would not be
content to try Tor $l,25u, u,000,00U. they
would aim at 81 50U,OUO,0OO, or even ST.
750,000,000.
None OF them-of information and OF
eXperlence-seems TO imagine THAI we
could possibly arrive at negotiating
ourselves into getting as mucn as $2,-
O0C, 100000.
MI. levlnson, however, adds two con-
diEIons TO nus Willingness to compromise
with our debtors on the other Slue Of
The Atlantic.
The first condition is that they shall
reouce their almaments ana accord
Ingly enable us to reduce our own arm
aments on scale Wnlcn he calculates
woula save us some $4,000 100000 dur
ing the next Twelve years. The second
condition Is:
In order further to promote good
will and general appeasement, the
contested claims which have been as
serted-particularly by British citizens
-againsG certain of our State govern
ments shall be abandoned and released" !"
Mr.. Levinson seems politically to cal
cuiate that in this way it might be pos
sible to commend general European
debts reduction and settlement to the
United States Senators from Alabama,
Arkansas, Florida, Georgia, Louisiana,
Mississippi, North Carolina and South
Carolina. Some of those Senators have
been very vehement against "repudia-
ton" by European governments OF their
debts to the United States taxpayers.
MIR. Levinson apparently hopes that
they may look upon little "repudia-
tion"'by those governments with q more
lenient eye If along with it they can
secure an elimination of the charges of
"repudiation" brought by European in
vestors for now these many years
against their own States.
The feeling In Europe toward those
States Is always very intense and often
very active. A circular on the subject
was distributed throughout the Neither