The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-05-18
| Cover the World
by WILLIAM PHILIP sIMMs-

NTASHINGTON. May 16-With another in
w stallment on Europe's ten billion dollar
war debts due the United States June 15 move
is on foot in Congress to reopen the deadlocked
negotiations.
Between now and that date, on which the
next payments from the dozen debtor nations
should be paid-bht will not save in the case
of Finand-an attempt will be made to prod
Congress into action.
There is an existing statute which forbds
the executive branch of the government to enter
into any arrangement, or to make any ADJUST
ment. concerning war debts without Congress
consent.
The writer is in position to state that some
of the leading members of Congress now feel
that the time has come to unite the hands of
the President. not only authorizing him to act,
out to suggest the lines along which he might
proceed.
CPEAKING for Europe as we'll as herself, Great
- Britain has informed this government that
unless and until the United States indicates a
willingness to discuss new and more favorable
settlement, the debts may be considered dead
letter.
The only nation not in default is Finland. She
has paid each instalment in full and on the
minute For two years Britain has omitted all
mention of the debt in her annual budget.
The conviction now is fairly general that un-
less settlement is reached in the comparatively
near future. none will ever be possible save on a
basis of out and out cancellation.
Investigation here also reveals that Europe
today is more willing, if not anxious, to reach
new debt agreement than she has been at any
time since the Hoover moratorium, when the de-
faults seriously set in.
The reason is not far. to seek. Europe is con-
WINGED that another great conflict is in the
offing and she places a fattering value upon the
moral support of the United States.
Few go so far as to believe that, in the event
of war, this country would again go very heavily
into the money-lending busineSS-not even to
help Europe buy munitions or even food from
American producers But American public
opinion would be worth something to the side
that could win it.
CECRETARY of the Treasury Morgenthau is
~ known to be interested in the war debts
problem But as part of the executive branch,
his hands, too, are tied by Congress. Neither he
nor the President dareS risk initiating san adj
justment without specific authorization from
Capitol Hill
Secretary Morgenthau however was seen as
dropping Europe a gentle hint preparatory to
June Is when, in his recent broadcast, he stated
the willingness of this country to accept gold
in payment of balances. Economists have stated
that Uncle Sam could not afford to accept gold
and lock it up in the Treasury where it would
become sterile Debts in default the Secretary
reminded trif1e cynically are also sterile
The "Levinson plan sponsored by repre-
sentative committee, is still under study here
and may be used as a basis of action. 1t pro-
poses that the United States take the initiative
to clean up the war debts and related problems.
1t would consider reasonable cash payment of
the debts world sterilization of currencies trade
revival and an all-round five-year arms hol-
day.