The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-05-21
| Cover the World
by WILLIAM PHILIP sIsIMS-

xxTAsHNGTON, May Ex-senator Willard
w E Tydngs Cd. Md this week will in
troduce legislation OF a far-reaching order de-
signed to settle, once for ALL inter alied war
debts reparations and associated problems.
In a statement 10 the writer, the senior Sen
ator from Maryland declared that in his opin-
ion the whole program of national and inter-
national recovery turns in M small measure upon
this and related issues.
AS soon as he can get the floor, therefore,
he declared-probably tomorrow or Thursday
he plans to offer a resolution and address the
Senate on his thoroughgoing project
InstaImentS aggregating l66OOOOOO from
dozen different European countries VIII fau due
on June 15-three weeks from Saturday. Save
for approximately S250000 from Finland, not
a cent will be forthcoming. Great Britain,
France, Italy, Belgium, Poland and the rest VIII
remain in complete default
The whole international atmosphere is being
slowly poisoned and embittered as result OF
the empasse into which the war DEBTS issue mas
drifted, according to high officials OF the Ad-
ministration.
WET since Congress, by law. forbids the ex-
i ecutive branch of the government to alter
in anv wav whatever the settlements Of dec
ade ago. and has since refused to act itself, the
debts threaten to die natural death.
None of the debtor nations however has re-
undated On the contrary each has repeatedly
stated that it holds the obligations valid, though
impossible to payment as they stand. II and
when new settlement is reached, they have
informed Washington, they will resume service.
Until then they will remain in detault-that is
to say, all save Finland.
The war debts and reparations situation has
become hopeleSsly muddled. More than score
of nations owe each other an aggregate of %
billion dollars With interest until paid, more
than so billion dollars would change hands, or
four times all the monetary gold in the world.
oil tI1a cd <
clear creditor To it some 20 nations owed, at
the time of funding a decade ago, nearly $12,-
OOOOO0OO0 The funding arrangements were
carried out by World War foreign debts COM
mission appointed by the President on the au-
thodity of Congress.
Some of the nations for time met the semi
annual inStallmentS on the dot. Some did not
act so we'll Finally, in 1881, came the Hoover
Moratorium on all governmental debts
including war debt installmentS-since none has
been paid in full.
~REAT BRITAIN and four other nations
" made Token payments"-less than 10 per
| cent of the amounts due-during 1888. But in
| 1884 the Johnson act was passed, after which
! nations were considered in default unless they
met their installmentS in full
| Since that time all the nations except Fin
land are in complete default, the rest having fol-
! lowed the lead of Britain.
ANY resumption (of war debt payments) on
| the past scale" Downing Street has informed
the State Department here, could not but in
tensify the world crisis" Britain wants revision
but will not take the initiative.
Two years ago President Roosevelt assured
the debtor nations that Washington would will
ingly review the whole debt question lin the
near future" Since that time however, Con-
gress has tied his hands. Up to now therefore.
no serious move has been made in the direction
of a new settlement.