Henderson Daily Dispatch

Settlement Of War Debts In Lump Sum Of 17 Percent. Would Hardly Be Popular
By CHARLES P. STEWART
Washington, Feb. 14.-Would 17 percent of Europe's war debts to the United States, paid in a lump sum, be satisfactory to Uncle Sam, in-full settlement of all these obligations?
Such, cables from London say, is the offer which England's representatives will make, in the debtor powers' behalf, at the coming Washington conference.
It was understood, indeed, that President-elect Roosevelt was insisting on separate negotiations with each of the Old World countries. Still, the consensus here is that scarcely can avoid answering "yes" or 'no," if the British submit a joint proposal to him
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The former allies scaled Germany's reparations down 90 per cent at Lausanne. The expectation was that they would seek debt reduction at the same rate, but English statesmanship appears to have prevailed upon the continental nations to be a trifle more liberal than that. Some accounts have it that they are agreed on $1,250,000,000, but the London version puts the figure at $2,000,000,000.
Senator Robert B. Howell of Nebraska is the greatest actuarial expert in congress on the subject of war debts. He was not in Washington when news of the prospective lump sum offer reached here, but it happened that I discussed the possibility of this precise suggestion with him prior to his departure, on an election investigating mission.
"I never will vote," said the senator (Continued on Page Three.)
to borrow in America the money with which to pay us. A bond issue will be concealed somewhere in the plan.

"In pre-armistice and post-armistice installments we loaned $12,090,667,000 to Europe. We accepted a settlement by which the principal is cancelled, but by which we are to receive interest at an average rate of 2.62 per cent-or less than the rate we are compelled to pay for the money we borrowed to advance to the Europeans-spread over a 62-year period.

"If Europe were to ask now for our treasury's receipt in full, for a lump sum involving a second reduction, having previously borrowed the lump sum from American citizens, I would say 'no,' emphatically.

I should prefer repudiation, to teach Uncle Sam a lesson

And, curiously enough, transatlantic dispatches do quote London and Paris bankers as predicting that two billions in European 3 per cent "lump sum bonds" to cancel the war debts, would be quickly gobbled up- mostly in the United States.

It is to be taken into account that Senator Howell is a Republican.

Heavy Pressure.

Should ex-Governor Roosevelt, following his presidential inauguration, effect a war debt settlement, it generally is recognized, by debt-reductionists and anti-reductionists alike, that the pressure upon members of his party in congress, in favor of acquiescence, would be tremendous.

Nevertheless, Senator James Hamilton Lewis of Illinois, a loyal Democrat, publicly and solemnly warned the president-elect against any debt compact of a sort to risk splitting the ranks of Jeffersonianism.

Clearly a 17 per cent lump sum settlement would not be popular unanimously, anyway.

(Continued from Page One.)

"for a further cut below the present value of those obligations

"Besides, if the European governments do propose a lump sum bargain, they inevitably will undertake

Settlement of War Debts In Lump Sum of 17 Percent. Would Hardly Be Popular

(Continued from Page One.)

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