The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-06-20
u. s. TO TAKE
STEINER VIEW
| ON WAR DEBTS
Uncle Sam, Tired of Being
Goat Sends Sharp
Note to Berlin.

NOtC W 1CI Ills
WASHINGTON, June 20.-Stung
to the point of evaporation by
Europe's growing habit of making
Uncle Sam the goat whenever debt
issues arise, the state department
plans materially to stiffen its atti-
tude.
The most vigorous rebuke this
country has yet administered to a
major foreign power over debts has
gone forward to Germany as a re-
suit of her summary action with
respect to her external debts" to-
gether with an energetic" protest
against discrimination against
American investors"
But if Germany chooses to de-
fault or discriminate, there is lit
tie this country can do about it.
The United States is as helpless with
regard to the German debts as it
is with the British, French and 9TH
er war debts now in default.
Great Britain and France plan
reprisals against Germany. If she
goes ahead with the complete trans
fer moratorium just proclaimed and
suspends payment on all her foreign
debts, they have warned, they will
take steps to collect for themselves.
British Have Plan
Great Britain, Chancellor of the
Exchequer Neville Chamberlain has
intimated, plans to set up an ex-
change clearing house to handle all
imports and exports between Britain
and Germany and apply any favor.
able German balance to paying off
British holders of German bonds.
This Britain is in a position to
do. Anglo-German trade normally
is IN Germany's favor. Last year
Britain bought approximately $780,
600 600 worth of German goods and
sold $75000,00O worth to Germany
Here was a $75,OO0,O0O surplus and
balances that Sir Neville now
threatens to pay British nationals.
France is in similar position to
put pressure on Germany. The
Paris government has warned Ber-
lin that she contemplated either
following the lead of Britain else
adding a super-taX to regular GUS
toms duties on German imports and
applying the proceeds to paying off
French holders of German bonds.
U. S. Holds the Bag
Neither Britain nor France is I'M
derstood to contemplate anything
more drastic In fact nothing fur
ther would seem to be required
unless, of course, trade with Ger
many practically ceases. Conf1sca-
ton of private property or capital
of Germans, within the creditor
countries, would constitute fla
grant violation of international law
The United States. unlike Britain
or France, sells far more to Ger
many than it buys. In normal years,
Germany buys about 5000, 100000
more from us that we buy from her
Even last year the balance was
$60,000,0 900 in our favor RepriSals
on our part, therefore, might, and
likely would, prove a boomerang.
Switzerland and Holland are re-
ported to have been promised inter-
est payments in return for an
agreement to buy more German
goods. If Britain and France collect
out of surplus exchange growing
out of German trade. the United
States will be left holding the bag
as usual. And it is this which so
rifles our state department.
Debts Scaled Down
1.-THE spectacle of not only having
to accept losses it reminded Ger
many in yesterdays protest, but to
perceive payments to investors of
other nationalities at their ex-
pense," would arouse the American
public. German foreign debts, &C
cording to the survey made undeS'
the Berlin decree of 1882, totaled a
little over 20 billion marks, or about
100000, 900 at the rate of ex-
change then.
Of this, Americas share amounted
to some $2,0OO,OO0, 900; Hollands
100000: Switzerland's $780,
100000; Great Britain's 100000 900.
and Frances $3.50, 10000
These amounts have since been
reduced, Americas share to nearly
half. German securities, now in de-
fault, are privately owned all over
the United States.