Evening star., 1934-12-02
BORAH SCORES EUROPE
FOR REPUDIATINC DEBTS
Hints Attitude Assumed and Resulting
Burden on U. S. Taxpayer Calls
for Special Treatment.

of a program to save debtor nations
from defeat and ruin, will take their
place alongside of other broken prom
ises and scraps of paper. If these
obligations are not binding and to be
faithfully observed, one can hardly
think of an obligation which would
be binding.
Obligations Are Binding.
Those who were present when the
loans were made and listened to the
pleas for speedy assistance, even as
they waited for the ordinary forman-
ties of the transaction, expressing
fear as to what might happen, have
some difficulty in realizing that those
declarations were by the representa-
tives of the same nations which now
declare the debts are dead 1t seems
incredible that obligations created
under such circumstances would be
considered as less than obligations of
honor.
Logically, there is not mortgage
upon an American farm that has
more honor or verify behind it than
these debts. There is not treaty nor
an obligation now extant, after
quarter of a century of wreckage,
more binding than these obligations,
now pronounced void-discarded, dis
owned and denounced as dead. It is
international communism. 1t is in
dictment of property rights by great
nations whose civilization rests upon
the sanctity of contracts. There Is
no international constitution de-
claring against the impairment of
contracts. But this constitutional
provision was supposed to have been
written in the code of honor long be-
fore it was written in the funda-
mental law of the republic.
1t is worth while to record again
that these debts now rest upon ad-
justment and settlement made long
after the war was over. The debtors
came and were heard fully and COM
pletely. All claims, all equities, were
considered and the great nations
voluntarily came to an understanding
and agreement. They were not set
Elements between victors and the de-
feated. These settlements were not
drawn up in the absence of the debtor
and the latter told to sign on the
dotted line, according to the precedent
Of Versailles.
They were settlements between
those associated in the war and after
the war was over and the fullest and
freest discussion allowed. And what
were the settlements?
CanceIad &c ooo nm nm
In these settlements we Cancelled,
or acquitted. the obligations of Bel
GUM to the extent of 53.5 per cent;
the obligations of Czechoslovakia, 251
per cent; a. France, 528 per cent; of
Great Britain, s13F per cent; of Italy.
7s.4 per cent; Of Poland. 1875 per
cent: of Rumania, PSI per cent; of
Yugoslavia, 69.7 per cent. In other
words. after the close of the great war,
at the time the adjustments were
undertaken, foreign governments were
indebted to the United States in round
numbers in the sum of $4,000, ,00O,-
900, but when the adjustments had
been completed, the then present value
of the debt was $500, 100000, being
cancellation of over $6,000,0 900 900.
1t was contended that this can
collation. was made in the interest of
a better economic program; that 1t
was made in the interest of financial
recovery. Of economic solidarity
throughout Europe. 1t was made after
taking into consideration everything
which was entitled to be part of
the adjustment. And these are the
debts which we are told are dead.
Stand in Way of Trade.
1t is contended that these debts
stand in the way of developing mar
kets and building up trade The con-
tention seems to be that 1t is in the
interest of trade and the develop
ment of markets that the taxpayers of
the United States pay these debts in
stead Of the taxpayers of the nations
which owe them. In the budget of
Belgium the PERCENTAGE of the debt
Of our debt in the budget of Great
Britain less than 3.75; of Italy. 1.41:
France, 2.65.
If this situation were one in which
distressed countries were making what
payments they could and asking for
time, it would be wholly different. In
times of economic distress, considera-
ton for the debtor, from the home
owner and the farmer to great ma
tons, calls for leniency But that is
not the present proposition-this is
case of renunciation, reputation,
which calls for a wholly different atti-
tude upon the part of our Government.
(Copyrisht 1884 by the North American |
NeXSpap per Alliance. Incl