The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-05-22
/ Cover the World
BY WILLIAM PHILIP sIMMs-

WASHINGTON, May 22-Representatives
w here Of dozen foreign powers today pre-
pared 20 inform their governments Of startling
new plan of war debts settlement and world re-
covery laid before the Administration by Senator
Tydings Cd, Md.
Whether their governments will fall in line
with the scheme, the ENJOYS here have no means
of knowing They do know, however, that unless
The United States and the debtor nations reach
a new settlement somehow, the stalemate which
has persisted for some years will become chronic,
II not hopeless
On the other hand, it is agreed among for
eign and American experts alike, settlement OF
the controversy would speed up world recovery.
bring trade revival stimulate prices and remove
a constant and growing political irritant
1t is recalled that after the Lausanne con-
ference at which the allies scalded down the
amount Of reparatlons which Germany was to
pay, there marked tendency for commodity
prices TO rise throughout the world. This
tendency was reversed when the prospect of a
final settlement of inter-go governmental oblga-
tions-including war debts~faded.
TT is likewise observed that Immediately after
Il the Hoover moratorium was announced in
1891 listed values in the United States rose ten
billion dollars in few days. But again there
came a sharp drop when moratorium plans
struck q snag due to French objections
A third phenomenon occurred following Great
Britains payment Of her December, 1882, INSTALL
ment amounting to approximately 100000 600
the last full payment she made There was a
sudden drop in commodity prices, both in Amer
lea and Europe.
Thus, it is pointed out, the treatment of
inter government deDts closely affects world re-
covery because of its inevitable effect upon cur
rency, prices of all kinds and the internal eco
nomic stability not only of the nations directly
concerned, but Of others as well. The relation
between reparations and war debts and foreign
trade is likewise stressed by the Commerce De-
partment here.
Since the allied nations have definitely
abandoned their reparations claims Ger
many" declared ClaudiuS T. Murchison, director
of the Bureau of Foreign and Domestic Com
merce IN a study submitted to Secretary Roper,
They are in agreement that their war debts to
the United States should be greatly reduced if
recognized at all, and that settlement must wait
upon world recovery.
I'm Great Britain the opinion seems to pre-
vail that definite steps toward currency stabili
Zation can not be taken until Great Britain
knows how great a burden the resumption of
war-6ebt payments may entail" On the surface
Dr. Murchison sees little change in American
sentiment regarding the war debts.
IF, however" he concludes. "the adjustment OF
i the war debts were tied into agreements pro-
viding for reduction Of ornaments the stabiliza-
ton of curTencieS, the substantial elimination
of barriers to international trade, it is possible
that the present attitude of the country &.
might undergo a considerable change"
One by one, Great Britain, France, Italy, Bel
GUM, Poland, and the rest of the debtor nations,
when dunned for installments due, have simply
stated that payment under the present schedules
is impossible But, they add, they stand ready
to talk new terms any time the President says
the word.
The President has replied, through the State
Department, that it is not within his discretion to
reduce or change in any way existing agree
ments. Such power" he observed, rests with
the Congress"
Senator Tydings resolution is designed to
make New Deal possible for inter- governmental
war debts and related problems along the lines
indicated above.