Evening star., 1933-12-21

powers concerned" They stated that
Europe had not SO far accepted as self
evident, that If a debtor seeks relief he
should 60 to the creditor, not wait for
the creditor to come to him.
GrappIe With Problem.
Europe realized during this year OF
poStponment of payments that 1t was
essential to look at facts and into the
future, and this brought about the
meeting of the Committee of Experts in
Basle to study and report on conditions
in Germany with special reference to
the resumption of reparation payments,
and soon after the meeting at Lausanne
of the chiefs of state to act on the re-
port. At Lausanne the European
statesmen grappled for the first time
with hard facts and with the deter
mination to reach reasonable settle
ment. So far as Germany was con-
cerned they realized that the payments
under the Young plan were impossible,
that unless there was real relief they
would get nothing whatever and would
only plunge all Europe into deeper mis-
cry. They reduced the reparation bill
of Germany by 80 per cent.
Because these same statesmen were
representing their countries at the Dis
armament Sonference, of which Amer
lea was member, the old stories were
thrown about that the American repre-
sentatiVeS shared in the discussions and
made promises as to what the United
States would do If real relief was given
Germany. 1t would seem needless to
say that these stories were absolutely
false, but they are still sometimes re-
,Nd af or
in the last French note, when France
again refused to pay the December debt
installment. Why, if America had
given such assurances, was it necessary
for the conferees to sign the So-called
gentlemenS agreement that the ar
rangement with Germany would be cam
celed unless an understanding with the
United States could also be reached?
There can be no denying the fact
that the Lausanne agreement changed
the whole character of the international
debt situation, in that the debtors now
have less income with which to pay. In
view of this, the various debtor nations
in November, 1882, asked that they be
allowed to discuss the matter again
with the American Government. and
that, in the meantime. they be permit
ted to postpone the December Is in
stallment. The second part of the re-
quest was of necessity refused, since
the President has no authority to post
pone or revise any payment without the
consent of Congress. Great Britain and
Italy paid. France refused to pay.
Under these circumstances President
Hoover sent a special debt message to
Congress, statesmanlike message which
it would pay all thoughtful American
to reread He pointed out that the
hj1t Tlar nf he uh
question of world economic dislocation,
that price levels had been disastrous,y
affected by abandonment of the gold
standard in many countries, that the
fight against the waste involved in huge
ornaments had not progressed as it
should except in one country" He also
declared the taxation required for
the payments Of the debts owing to our
Government does not exceed 0ne-Quar.
ter of the amounts now being imposed
to support their military establish
ments.'' He showed that real recovery
could come only through consideration
of all the matters which adversely af-
fected world economy. but that, since
the attack on the entire situation must
begin somewhere, a real exploration Of
the whole debt question should be made
before the meeting of the Economic
Conference. He said that the Executive
intended to proceed with this invstiga
tion, if possible in collaboration with
the President-elect, and that he would
be glad to have Congress, if 1t so wished,
reconstitute the Debt Commission. This
Congress refused. and as cooperation
with the incoming administration proved
impossible, nothing could be accom-
plished before the 4th of March The
debtors saw no advantage in reaching
agreements which might be repudiated
few months later.
Agreements Unfulfilled.
So the situation stands today. The
original debt agreements remain, but,
except in the case of Finland. are not
being fulfilled. France continues to pay
nothing. Great Britain makes what are
called, for want of better name, token
payments. There is no doubt that the
debts are a source of deep irritation
and in this way retard general economic
recovery. From the beginning the prin-
ciple on which the American Govern
ment has acted has been to protect the
rights of the American people and to
avoid default, which would be, for all
time. a serious blow to international
confidence and to international moral
ity. 1t is no solution of the matter to