Evening star., 1934-12-02
BY WILLIAM E. BORAH,

TINE premier of Great Britain, In
recent public statement, de-
clared in effect that the ques-
L ton of international debts no
longer obtained and that 'the
international debts we're dead" He
left no doubt that he regarded the
debt problem as solved and settled
and out of the way.
This can mean nothing less than
that Great Britain does not propose
to pay the debt due from her; in
other words, that it is her purpose to
repudiate the debt and. along with
her, the other debtors are to do the
same, with one or two possible ex-
ceptions.
This statement comes from the gov
ernment of Great Britain. The United
States has not Cancelled the debts
The United States has not, I assume,
proposed to cancel the debts. The
debts have not been paid. So we have
staring us in the fact the bald,
naked announcement that the debtors
propose to repudiate their debts.
AS a matter of fact. these debts
cannot be Cancelled. Some one must
pay them. Either the debtors must
pay them or the American taxpayers
must pay them. The only question is,
as it has been from the beginning,
shall those who contracted to pay
these debts pay them or shall the
taxpayers of the United States pay
them? If the debtors do not pay, our
taxpayers must pay.
Taxpayers Must Pay.
So we have another bald PROPOSE
ton, and that is that the debtors
have determined that the American
taxpayers must pay the debts of the
debtors. Rather strange proposition,
but 1t seems to be an approaching
fact.
On December 5 the debtor nations
will owe, and the same will be due,
S630,122, 1855. This involves the
amount coming due December IS and
the amounts in default hitherto.
Tsese amounts, with all other sums
yet to become due, are to be repudi-
ated, according to the clear inference
to be drawn from the British pre-
mier's statement. Press dispatches
carry the news from Paris that France
takes the same positien4z-
In plain language the statement
coming from London recently is re-
stated from Paris, to wit. the inter
national debts are dead" Thus the
declaration has gone forward from
the two leading nations that the debt
problem has been settled so far as
they are concerned, not by consent
of the creditor nation. not through
adjustment or legal action, but
through determination not to pay
It is interesting to note, also. that
in the same dispatch 1t was stated
that the largest peace-time budget
for war purposes, about S475,000, 900,
in the history of France was passed
practically by reclamation.
Formal Notes Anticipated.
It Is said that brief formal notes
will be or have been dispatched to the
respective governments advising them
of the amounts due. It would seem
that these brief formal notes have
been anticipated and due notice given
in advance as to what the answer
W NC. 4llC dJIlIuSlC VI Oul NION-
ernment under the circumstances will
determine whether the pronounce
ment of the debtor nations is to con-
stitute the final disposition of these
debts or whether they are to be paid.
In the light of the British premier's
statement and in view of what has
taken place when other sums fell due.
if the position of our Government is
less than positive and insistent that
not only is the debt issue alive, but
payment is expected, we may as well
consider the premiers statement as
final and the American taxpayers may
as we'll prepare to pay the debts due
from foreign nations.
This statement Of the premier
brings up again the whole history of
the international debts-a story
which goes far in undermining the
whole structure of international obli-
cations and the whole fabric of in
ternational good faith. Debt obi
cations contracted under the most
solemn circumstances, and as a part