Evening star., 1934-06-14

There has been immediate response
in the United States to the British
contention that partial payments on
war debts have been made anwiss
under the provisions OF the johnson
law, which classes most Of the Aa-
tions ~ repudiators.
1t is recognized ~ worthy Of con-
sideration that Great Britain has
similar difiicuities with debtor nations,
and that attempts to pay at present
would be . burden on the taxpayers
Of that country. II In also observed
that attempts by Great Britain to
collect from her debtors would create
serious trouble. A deadlock In seen
in the positions OF britain and the
United States. with each awaiting
action by the other. The most widely
drawn conclusion il that the war
debts will ultimately bs settled at q
conference.
Some hold" the Scranton Times
remarks, that the attitude Of Great
Britain has served to clear the air,
because 1t ends the uncertainties of
deferred and partial or incomplete
payments by various countries In re-
cent years, and brings the whole cues
ton down to . basis from which a
fresh start can be made toward
hquidating the war debt problem un-
der new conditions" The Indiana polls
Star comments that there seems to
be little reason to doubt that an
equitable adjustment will be reached
in negotiations free from congress
sional spellbindins."
The San Antonio Express voices the
opinion that o war debt conference
may be possible, ''should the nexotia-
lions with debtor powers, through Dip
lomatic channels, prove fruitless. Z"
The Louisville Herald-Post under
stands the White House position to
be that Congress viii attend to other
business and leave the President to
attend to this business on his own
good time and Ia his own good way"
Reviewing the history Of the oblisa-
tions, the New York Herald Tribune
suggests: The financing In another
major war crisis may be In the form
OF outright grants, N ours almost cer-
tainly would have been In 1917 had
the allies insisted. Intergovernmental
loans of that character do not besin
until the lending power feels that its
own fate Il staked upon the fate Of
the borrowers. Ner IL it easy to
imagine that the general breakdown
Of the war-debt structure will have
nearly as great or % immediate an
effect upon the normal operations Of
peace time AZ the universal break
down Of the private debt structure.
It is not the war debts, but the bonds
Of German cities or South American
governments that keep the siaells
shocked American investor TOSSING In
his sleep. Once o funetioning inter-
national capital market II rebuilt,
moreover, one may well doubt whether
even these rnisfortunes win have any
more effect upon the joyous purchaser
Of foreign 10 per eenu than the sim
liar misfortunes of Hritish investors
in the '70s and sos"
TO date, !" declares the Kansas City
Star, the johnson bill has produced
Just two results: First, it has largely
nullified the effects Of our recognition
of Russia In producing trade with
that country; second, it has shut of
the small payments on account which
we had every reason to expect from
Great Britain. The British govern
ment takes the view that full payment
on the debt is out Of the question, and
II 1t Is to be considered q defsulteg, even
II It makes = partial payment, thers 10
no reason for 1t to make such pay
naent." The Savannah Merning News
finds that ''ths eos1tentioa - gaining
strength ip this country thst corgysss