Evening star., 1934-04-23

Editorial comment on the johnson
bill prohibiting loans to nations which
are in default on their war debts, in
dicates confusion regarding the scope
and effect of the measure. Its prob
able bearing upon the future trade of
the United States with Russia is a
point about which there is much dis
cusSion.
In our opinion" declares the De-
troit News, 1.-The johnson bill is both
unwise and unnecessary. No foreign
government would attempt to float a
loan in this country without getting
the consent of the State Department.
It is quite probable the State Depart
ment will claim authority to say
whether a debtor has defaulted. What,
then, is the good Of the bill, except
as an expression Of opinion on the
part of Congress? Moreover, there is
grave doubt as to whether Congress
has the power to prevent a citizen
from investing his money in the loans
of any government with which this
country Is at peace" The Philadel-
phia Evening Public Ledger points out
that while the bill provides that mo
loans may be made to countries in de-
fault on payment of debts to the
United States" it also provides that
"loans may be made by financial In
stitutions set up by the Government
and by institutions in which the Gov
ernment has q controlling interest" :"
This paper continues: "These excep-
tions open the way to financing pur-
chases by foreigners regardless OF
whether their national government
is in default or not. But they also
put the control of all such financing
in the hands of the Government In
washington. So If the administra-
ton wants to encourage Russian pur-
chases here the way is OPEN"
It seems to the Sioux Falls Daily
Argus-Leader, likewise, that there is
nothing In the new law to prohibit
the Federal Export-Import Bank from
making loans to Russia or any other
government" and the Dayton (Ohio)
Herald expects that "the President
will have to make some exception In
the case Of Soviet Russia" since ut
was at the Presidents own suggestion
that recognition Of Russia came. and
recognition Of Russia was only influ-
enced by the hope Of a vast export
trade. something in the neighborhood
Of $500. 900 900 in the first year being
predicted"
"The supposition has been enter
tanned" remarks the Troy IN. "
Record, ''that the debt question might
be evaded through the fiction that the
money that might be advanced by the
United States to extend tbe time Of
payment by the Soviets wcalld 60 to
our producers instead Of the Soviet
importers, that our Government would
merely discount or underwrise the OBJ
legations Of the Soviet purchasers.
But now the officials Of the Soviet
regime give strict Interpretation to
the johnson law and declare In effect
that they viii not deal with q country
placing such an obstacle In its way.
Their official newspaper goes so far as
ITO warn that the Soviet government
win not be coerced into q debt settle
ment." The Newport News Daily
Press thinks that "the concern of the
Soviets is natural" but suggests that
before they say too much they await
developments" adding: "It is not the
intention of the people Of the United
States to coerce the people Of Russia
into the settlement Of q debt In the
making of which they had no part.