The Waterbury Democrat. [volume] (Waterbury, Conn.) 1917-1946, 1939-12-11
Did Someone Mention War Debts?

On Dec. IS, a quaint little ceremony
will be re-enacted in Washington. The Fin
nish minister will drive to the State De-
partment and tender the United States
government a check for $234,693 Hands
will be shaken, speeches made; but this
time the Finnish envoy may not smile.
Finland, as usual, is fully expected to re-
NIT her semi-annual interest payment on
her World War debt. If present plans
proceed, the money will be held IN sus-
pension by the Treasury Department, and
Congress will be asked to return the
money to Finland for use in the fight
with Russia.
That would be Americas way Of ex-
pressing appreciation to a country that
doesn't WEIGH on its obligations, and the
United States would have the whole world
know it. Cautious even in its generosity,
Uncle Sam would make certain, first, how
ever, that the payment Is actually ac-
cepted and then turned back Any other
procedure might inspire crazy notions
that the United States doesn't want deb
tor nations to settle up. What may
happen to war debts If present hoStilities
continue for long Is something no one
likes to think about just now. The ex-
pensive game of war isn't played with
buttons; and, If debtor nations happen
to find few forgotten shillings in the pig
bank, the money will 60 for machine
guns and such not 70 settle old ac-
counts. Even during the peaceful years
that lay between the two wars, debtors
were not over-zealous about renting.
Take look at the record: Total debts
incurred in the United States by the Allies
during and Immediately after the war
were $10,350 100000. The original inter-
est was per cent It was later cut to
4 1-2 per cent, and finally the entire debt
structure was rearranged to fix interest
on the ability of each nation to pay. Thus
Great Britain's interest today Is set at
3.3 per cent while Italy's is only A per
cent. SO far, all the nations have paid
only $4,000, 100000, most of which went
for interest. Because OF defaults and In
terest, the total debt has mounted to
$14,500,000,000. Had the debtor nations
continued to make prompt semi-annual
payments under the funding agreements,
reached between 1928 and 1928, they
would have paid the United States a
total Of $50 259 100000 by 1885, the year
in which all countries would have made
their final payments.
The war debt problem has provided
political ammunition for all sides since
the ink was still moist on the Versailles
Treaty. Attempting to get payments
from Europe just now would be about as
successful as stepping into riot to ask
one of the participants for the quarter
he borrowed last week. Europe Is inter-
ested these days only in contracting new
debts - not paying old ones. And about
all the United States can do Is to keep
sending dunning notes to the defaulters
as brusque reminders that you can't fool
all Of the people all OF the time.
II the world were a great corporation,
we might take 1t into receivership and
try running 1t our way until its affairs
were Strengthened. But 1t Is nothing OF
the kind, and the new debts that pro-
longed hostilities would produce might
so complicate international relationships
that even the United States would be
forced to throw up It's hands heiplessly IN
a state of complete confusion.