The Belgian Debt
THE BELGIAN DEBT THE Debt Commission has paved an important -*¦ stretch in the road towards international harmony. Doubtless the Belgians would have relished even better terms; but the...
...It is time for America to recognize economic internationalism as a fact," he declared, "and to join formally or informally with the other nations in working out political institutions under which international economic interests may be secure...
...Even the most fiery of the irreconcilables must see that, apart from the fact that all the old arguments against the collection of the debts are at least very strong reasons for granting lenient terms, the Belgian settlement compromises with no principle and virtually insures success at a low premium rate...
...A. S. Johnson...
...The little country has been sorely tried by deflation of currency, weak trade, and the advance of living costs...
...but the cancellation of a substantial part of the interest, a moratorium, and an ample time area are concessions quite unidentified with a financial offday...
...In so far as the United States is concerned, we have little doubt that Congress will ratify the agreement...
...What Germany does to fund the cost of the great conflict is, more obviously than ever, the stone upon which all European financing rests...
...But Americans may be sure that the present Debt Commission realizes this and much besides—its settlement with Belgium is a precedent, at least in so far as it assures us that the negotiations are likely to be considerate, reasoned and far-sighted...
...Because the European situation is what it is, and because modern national stability is so largely a matter of currency value and trade balance, unusual interest attaches to what was said about world finance at the Williamstown Institute of Politics by Dr...
...What if it does involve recognizing a "moral obligation" which President Wilson assumed of his own accord...
...Of course Belgium merely prepares the way for the much more interesting and important case of France...
...The coming of M. Caillaux and his aides will bring to the front an absorbing question—"How much can France pay...
...We may expect, therefore, that M. Caillaux's effort will be directed towards binding up payments to this country with collections under the Dawes Plan...
...In fact, if he wishes to gain the support of the Chamber and keep taxation within practical limits, it is difficult to see how he can do anything else...
...Should Berlin collapse, a debt collector would have about as good a chance of collecting on the continent as Oliver had of getting a second helping...
...whether we ought to prepare for it is another...
...But it is not at all unlikely that the world's experience with the tremendous sums loaned and borrowed for the conduct of the great war will eventually teach us many new things concerning the international government of money...
...Whether or not we are drifting towards this variety of financial manipulation is one question...
...The Dawes Plan is such an institution in practice...
...Taking everything into consideration, M. Theunis ought to recover much of his popularity in Brussels, where since his demission the government has been an odd hodge-podge of parties unable to gain the upper hand...
...While the funding of its obligations to America will mean an added burden, the task should bring with it increased economic confidence and a sounder foreign policy...
...If we assume that she agrees to meet her obligations to England in a measure at all commensurate with British demands, it seems inevitable that she will have to get some noticeable leniency from the American Debt Commission...
Vol. 2 • September 1925 • No. 17
