The Waterbury Democrat., 1936-12-17

though not TOT reasons appreciate.
 What the sx-Allied countries now see in the Hulltreaties. put very simply, is Q chance to pay their war debts.
 And there is only one reason for this sudden surge of senti- ment to pay what they once be- rated Uncle ShyIock" for even suggesting that they pay-namely to get around the Johnson Act and borrow more money from the United States.
 To this end some of the ex- Allied countries have bounced up- on MT. Hull's economic philosophy and put forward an excellent case for themselves.
 Free Wheeling
 Take the case of Italy. Dis- cussions regarding an economic treaty between Italy and the United States have been going on for some time. lin these the Italians have put up the very plausible idea that while they are anxious to pay their debts, they cannot pay in cash because of their scanty gold reserves, but they will pay in kind.
 They will pay in shipments of Italian products to the United States and even by giving free
 services tO American tourists, whihc the United States gov- ernment could sell, in turn, to
 the tourists and credit the sales to the Italian debt.
 MT. Hull has been an ardent advocate of the free flow of trade, the Italians point out, and here Is an opportunity not only to put the Hull theory into practice, but to pay the Italian debt by 50 doing.
 It can be made to sound very plausible.
 France and Britain
 France and Great Britain are known to entertain the same gen- eral ideas though there have been no official conversations. France already has a trade treaty with the United States covering 8 few minor commodities, but 1t could be expanded. The British have none.
 ONE FACTOR which increased talk of debt payment was Presi- dent Roosevelt's warning that the stock market was being inflated by foreign investments. The franker British newspapers, anxious for closer Anglo-Ameri- can relations in view of European war clouds, suggest that if foreign CTS can afford to invest in the United States, they can now af- ford to pay debts.
 ANOTHER FACTOR is Roose- velt's overwhelming reelection. The chanceries of Europe figure that Roosevelt Is now in Q posi- tion to scale debts to Q point never before permitted by Con- gress = and this time get. away with 1t. This should be noted carefully. Nowhere is there any thought, at any time, by anyone, that the debts should be paid in full. Even if the debts are to be paid in kind, Europe takes it for granted that there will be very drastic reductions.
 Bare TreasurieS
 Mussolini's interest in war debts right now is need of cash. The Ethiopian war left him with 8 low treasury. He had to scrape close to the bottom. Now his armament bills are running up. Also, he needs cash to develop Abyssinia. A loan in the United States-on the Johnson act was obviated would do the trick.
 THE IDEA IS TO PAY A LITTLE; THEN BORROW A LOT MORE.
 French interest in war debts is due in part to Blum's sincere de- sire for closer Franco American friendship; also to heavy French armament bills.
 Great Britain Is in the same category. Both see themselves as Europe's sole outstanding de- mocracies and they are feel ing lonesome. They would like some companionship from the United States = also mone- tary aid.
 And most important of all. they see the day when another war will break in Europe and they find the last wars debts standing in the way of another appeal to the United States ITO Make the World Safe for Democracy" .. .. Italian Naval PrOwess
 British officers in Gibraltar, usually uncommunicative, make no secret of the fact that Italian naval bases in the eastern Medi- terranean and the Red Sea (jugu- lar vein of the British empire) have them stopped.
 While the British were worrying about the dole, the League of Nations and whom the King should marry, Mussolini was very quietly fortifying two or three