Evening star., 1934-06-01

i nnQ myself IN COmpleCe dCCOru
with the four principles discussed
in the conference between the
President and myself yesterday and
set forth in statement which the
President has issued today.
These debts were actual loans
made under distinct understanding
and with the intention that they
would be repaid.
In dealing with the debts each
government has been and is to be
considered individually. and all
dealings with each government are
independent of dealings with any
other debtor government. In no
case should we deal with the debtor
governments collectively.
Debt settlements made in each
case take into consideration the
capacity to pay of the individual
debtor nations.
The Indebtedness of the various
European nations to our Govern
ment has no relations whatsoever
to reparations payments made or
owed to them"
OF the $l25, 100000 cue and pay
able December Is, 1882, the Treasury
received $98, ESQ 900, of which $685.
550000 was the British payment made
subsequent to the above correspond
ence, and the other S3,000,000 rep
resented payments by five other
debtor nations. The amounts due
from Belgium, Estonia. France, Hun
gary and Poland, which were not re-
ceived, amounted to S25,000,000, OF
which $19,26O0OO was due and pay
able by France.
Left Door Wide Open.
In my statement issued Novem-
Der %, 1882, had said:
Il firmly believe in the princi-
pie that an individual debtor
should at all times have access to
the creditor; that he should have
opportunity to lay facts and repre-
sentations before the creditor, and
that the creditor always should
give courteous, sympathetic and
thoughtful consideration to such
facts and representations.
This is a rule essential to the
preservation of the ordinary rela-
tionships of life. 1t is a basic
obligation of civilization. 1t ap-
plies to nations as well as to
individuals.
THE principle calls for a free
access by the debtor to the cred
itor. Each case should be con-
sidered in the light of the condi-
tions and necessities peculiar to
the case of each nation con-
cerned'
On January 20, 1888, President
Hoover and agreed upon the follow
ing statement:
The British government has
asked for a discussion of the debts.
The incoming administration will
be glad to receive their repre-
sentative early in March for this
purpose. 1t is, of course, neces-
sary to discuss at the same time
the world economic problems in
which the United States and Great
Britain are mutually interested
and therefore that representatives
should also be sent to discuss ways
and means for improving the
world situation"
Obligations Tabulated.
On March 4, 1888, the situation
with regard to the Indebtedness OF
other governments to the United
States was, in brief, as follows:
France - The French Parliament
had refused to permit payment oi
Sl9,26l ,432.50 interest due on the s3,.
863, ,650,000 bonds of France owned BY
the United States.
Great Britain-With respect to the
British bonded debt held by the
Treasury in the principal amount ot
S4,368, 100000, Great Britain, in meet
ing due payment of s3O,0O0,0 900 prin-
cipal and $65,550,O00 interest, hac
stated that the payment was not to be
regarded as a resumption of the an
nual payments contemplated under
the funding agreement of June 10
1928, but was to be treated. so far as
the British government was concerned
as capital payment of which account
should be taken in any final settle
ment.
Italy-With respect to the $1,000.
100000 principal amount of bonds oi
the italian government held by the
United States Treasury, the Italian
government had paid the sum of ST.
245,437 interest due December Is
1882; but in doing so it referred to a
resolution of the Grand Council OF
Fascism. adopted December 5, 1882
in which "a radical solution of the
'sponging of the slate type was de-
clared to be necessary for the world:
economic recovery"
Czechoslovakia Pays.
Czechoslovakia, in making a pay
ment of Sl,500,000 principal, due De.
cember Is, 1882, on its debt of $685.
0OG, ,OO0 had stated that this payment
constitutes in the utmost self -deniaI
of the Czechoslovak people their final
effort to meet the obligation under
such extremely unfavorable circum-
stances"
Belgium had declined to pay 81
l25,OO0 interest due December Is
1892, on its bonds of S400, $50, 900 held
by the Treasury of the United States
and in so doing had recited circum-
stances which it stated prevent il
from resuming. on December Is, the
payments which were suspended by
virtue of the agreements made in July
1881" adding, Belgium is still dis
posed to collaborate fully in seeking a
general settlement of intergovern-
mental debts and of the other prob
lens arising from the depression"
Poland had not paid the $232, ,0OC
principal and $3,O7O,980 interest due
December IS. 1882, on its bonds in
the principal amount of s205, ,057 ,0OO
held by the Treasury of the United
States.
OF the nine other governments
whose bonds are held by the Treasury
of the United States, Estonia and
Hungary had not met payments due
December Is, 1882.
Austria is availing itself of a con-
tractual right to postpone payments.
Greece was making only partial pay
ments on its foreign bonded indebted
.W~~~~