Evening Star Newspaper, July 21, 1932, Page 23

SHIPSTEAD SCORES DEBT CANCELLATION Europe Should Pay U. S., He Tells Forum—Urges Arma- ment Cuts. (Continued From Sixth Page) _ States under the debt settlement shall not be canceled. “After the secret ‘gentlemen’s agree- ment’ leaked out Herriot of France stated that that agreement merely car- ried out the conversations of Laval and Hoover last Fall. Mr. Chamberlain of | Great Britain stated the parties to the agreement had had the benefit of con- sultation with representatives of the American Government. However, after the President and the Secretary of State in letters to Senator Borah denied such agreements having been made by us, both Herriot and Chamberlain said they had been misquoted. “The fact remains that European Governments believe that after this Fall's election, agreements will be made with us to reduce or cancel the pay- | ments that still remain unpaid. Sees Statesmen Erring. “The American taxpayer has paid for #0 many mistakes of his statesmen that these statesmen seem almost justified in believing that he is willing to pay some more “Let me make it clear, the cancella- tion of these sums will not get rid of the debts. It will only transfer, what has not already been transferred, to the taxpayers of the United States for pay- The total concellation of SI. ..000.000 of the debt due at the time of the debt settlement means that tax- payers of the United States pay to the holders of the Liberty Bonds a sum equal to about $100 for every man, woman and child in the United Stat This is on account of principal alone. The additionai payments on account of | interest will depend on the length of | life of the Liberty Bonds. The further cancellation of the 23, per cent payable annually for 62 vears will mean an ad- ditional annual burden of approximately 250 million dollars on the taxpayer of the United States. “In 1924 when 1t became apparent that Germany was not able to pay reparations in the amount her former opponents thought she ought to pav.| the Dawes plan was created. This plan called for funding of part of the reparations by the selling of German bonds to investors all over the world. A great many of them were sold here. This gave rise to a conflict of interests between the private investor who had bought German and other foreign bonds and the taxpayer who is responsible for payment of the Liberty bonds. Later more bonds were sold to fund repara- tions under the so-called Young plan. “American banks also loaned huge sums of money to Europe on long and ghort term credits. The long term creaits were usually sold to people in the form of bonds. The short term credits were carried by the banks. As the amount of private loans of this character Increased the confdct be- tween the private investors, bankers ‘who hold these private investments and the American taxpaver also increased. It is apparent that debtor governments and our own private investors in for- elgn securities are combining their forces in a concerted drive against the American_taxpaver for the purpose of placing their debts and doubtful in- vestments on the taxpavers' back. That is stating it bluntly but appears to be the fact. Declsion Necessary Soon. “Tt has been apparent for some time that the day will soon come when the Government of the United States would have to make a decision as to whose interest should be protected first, that of the taxpayver or that of the private investor and banker. If Europe can- not pay both, will the Government re- duce or cancel the foreign debts owing to the taxpayer and so make it pos- sible for the privat> investor and th? ‘banker to collect or will the Govern- ment refuse to reduce or cancel in order to protect the taxpayer and leave the private investors and the banker to take a chance of coliecting on his investments? The day for that deci- sion seems now to be upon us. In fact it was upen us a year ago at the time | of the announcement of the Hoover moratorium. That decision by the American Government was against the taxpayer and in favor of the pnvnr investor and forelgn governments. If the payments then postponed by us are not pald when agreed to this vear's moratorium alone will cost the Amer- fcan taxpaver 0.000.000. “Certainly debts. whether private or public, whether national or interna- tional. are an extroardinary burden at this time due to the fact that they were borrowed in terms of cheap credit money and now payment must be made in money or commodities based on the | high relative value of gold. But this | injustice all debtors must suffer, whether public or private. national or international. The governments of Great Britain and France and other Furopean countries have gone a long way to eliminate this injustice to their | own debtors by reducing the value of the pound and the franc. The Gov- ernment of the United States. so far having refused to take cognizance of this injustice to our debtors. whether foreign or domestic, has greatly in- creased the burden of debts to and within the United States. “However, not until if and when our own Government removes this injustice | ANSBURGH’S 7th, 8th and E Sts.—NAtional 9800 () Cupid’s Bows Day-Long ‘Lip Beauty’ Insurance: Real beauty new this new COTY lipstick —at the amazing price of S0c! Velvety softness, day - long permanence— and a choice of five lovely shades. TOILET GOODS STREET FLOOR. to our own citizens who are debtors | should foreign debtors expect any re- | llef in this respect. “The world is drifting toward chaos because of lack of confidence. This | drive to cancel international debts is helping to destroy whatever confidence | there is left. When confidence goes, credit goes, As credit is destroyed, trade is destroyed. We hear a good deal about capacity to pay. Let us think of the capacity of our own.cltizens to pay, burdened with increased deficits and further undermined confidence in the Government. “Another discouraging but signifi- cant thing is that while governments and peoples are complaining about taxes to pay debts it seems impossible for them to come to an understanding ol the necessity for reduction of expendi- tures, particularly for armaments. The | nations of Europe are spending seven | | times more on armaments than they. | are paying the United States on debts still due to us and what they have paid to us they have paid out of monlies Teceived from Germany and which Germany borrowed. 1f these nations would cut their military and naval ex- | | penditures by one-seventh they could pay the sums to us that they have agreed to pay. What they have agreed to pay the United States amounts to | less than one-half per cent of the ma- tional incomes, less than 3 per cent of their annual budgets and less than | one-seventh of what they spend for armaments each vear. As a result of this large expenditure for armies and navies our own expenditures for arma- ments are many hundreds of millions | of dollars more annually than we other- | wise would spend. Proposals at Geneva. “The American Government has pro- | posed at Geneva a reduction of one- | third in armaments and this propo-| sition has been refused. I have intro- duced & resolution n the Senate which ! provides that if the governments of Europe will agree to a gradual progres- sive reduction of armaments of 5 per cent each year for 10 years and if they will further agree to abolish conserip- tion for all military purposes for a period of 30 years, total 40 per cent, the | Government of the United States will relieve them of all payments due us This proposition is based on the theory | that if conscription were abolished for | 30 years it would ensure world peace | for that period. We would save to our | taxpayers in reduced expenditures for | armaments during that period more than these governments owe us now. | International confidence and security would be assured because peace would be | assured and as a result international | credit and trade would be revived. The . world would have 30 vears in which | to revive domestic and international commerce under the blessings of peace and the resulting income to taxpayers would be so increased that the added | tax would not be a burden. | “However. up to the present time such | arrangement does not seem acceptable | to European governments. Therefore | cancellation _or reduction is out of the | | question. They seem to be drifting | i back into the pre-war system of secret diplomacy and forming alliances for balance of power. apparently confident | thal after the American elections their | debts to us will be canceled. In this hope and aim they are encouraged by . an army of propagandists here as nu- | merous &s was marshaled at the time the drive was organized to get us into the war. Bankers had their stake in | l‘hs war as they now have in cancella- tion. After-Election Prospects. “Whatever justification there may be for the hope of cancellation after the elections are over remains to be seen. “To the United States this demand for cancellation of sums owed us comes : at & time when we are-already over- | burdened with paving up loans, when ' we have a bigger deficit in our Treasury than any other country, when we have | a higher percentage of per capita unem- | ployment than any other country. It comes at a time when we are trying desperately to recover from the 15-year dissipation of credit resulting from run- ning our printing presses night and day printing evidence of debt in the form | of stocks, bonds and mortgages and dis- | posing of them to investors from the | Atlantic to the Pacific and from the gulfl to the Canadian border. The re- | | sult of this working of the printing presses overtime has now made it nec- essary for the present administration | and Congress to obligate the Federal Government to extend credit in the ! amount of over four billions of dollars ! to bolster up the tottering credit of | banks, transportation systems and other private industries. | i Hopes for Future Course. | | “In the absence of a will to reduce | expenditures on armaments I do not | see how the United States Government | | can agree to place more European bur- | dens on the back of the American tax- | payer. Let us hope that as a result of | the terrible price we are already paying | that the American citizen will learn by | this bitter experlence to be more wary | in the future about being led into other | international adventures under the guise of peace and wars to end wars when ! in fact these usually prove to be merely | what President Wilson, after his appar- ent disillusionment. in an address at| St. Louis, so pathetically said that the | last war was only another commercial war. | “One wonders whether the bones of | Woodrow Wilson would not turn over if they could but understand the ! brazen conduct of those whose | back we protected from 1914 to 1917. Surely never before has the good | nature and almost puerile faith of a| people in its pretended friends been 50 abused as they have been in the case of the American people who in 1917 hurled themselves into a fatuous cru- sade for the benefits of governments which today are forming precisely such a coalition, such a ring of iron, as caused the war in 1914 “To those who are listening to me I ask how long will you suffer being used as mere pawns in the game of | international finance and politics? Don't you think it is time for you to wake up?” , Hundreds of in Just One Coty Lipstick THE EVENING STAR, WASHINGTON, D. C., THURSDAY, JULY 21, 1932. Going Away This Summer? Neither Are We! Better Save a Little Money When Opportunities Are at Hand— And Here They Are, in Substantial Quantities, Too LANSBURGH’S FRIDAY It's an old Washington custom for people to go bargain-hunting on Friday. And—being thoroughly in favor of Washington customs—we’ve compiled a lot of really worth-while specials for tomorrow. Just take a look! Guaranteed Not to Break Monarch Therm—a—Jug SPECIAL FOR FRIDAY nics! This food hot or cold for hours. Steel jug glazed white stone 3 Perfectly insulated. One- gallon capacity. TOILET GOODS STREET FLOOR A Limited Quantity! IVA MAE Compacts REGULARLY §l1 ... SPECIAL A double compact that will plesse the most fa tidious woman. Black enamel with dainty rhine- stone ornament. Loose powder style. Round or square shape. JEWELRY STREET FLOOR. Look! 500 Pairs to Go! Women’s Fabric Gloves SPECIAL FOR FRIDAY 45c¢c 2 Pairs 85¢ They're bound to sell quickly at this extremely low price! Fine fabrie gloves in the popular serviceable pull-on style. White or eggshell. Easy to launder! GLOVES STREET FLOOR. Coolness and More Comfort! Tots’ Vanta Sun Suits AT A NEW LOW PRICE Let your youngsters bask in the glorious, healthful rays of the sun! And let them do it in style! Wool sun » with cotton mesh front. Sizes 2 to 6. TOTS' WEAR FOURTH FLOOR. Now, Can You Imagine? Sturdy PILLOW CASES AT A PRICE LIKE THIS 6 for $1 Closely woven muslin —entirely free from dressing. Bleached snowy white—and neatly hemmed. Sizes 42x36 and 45x36. DOMESTICS—THIRD FLOOR. Seamless—Full Bleached 81x99 Inch SHEETS 59¢ One of their claims to fame is th cessful manner in which they launder. Fine mus- lin sheets, neatly hem- med. Double bed size. DOMESTICS THIRD FLOOR. 'Phone Orders to Jawe Stuart, NAtional 9500 Combining Beauty, Protection and Economy Sale of Dining Room Slip Cover Sets Seventeen Pieces A Special Price! $2 95 Of course, they protect furniture—that’s their primary reason for existence! But have you noticed what a cheerful, cozy appearance they give your room? Shadow cretonne or Jaspe covers for straight or round back chairs—runners for buffet, server and table. Chintz Bar Harbor Sets Wicker furniture can be made lots more comfortable with one of these attractive $ 49 sets. Colorful glazed chintz covering— filled with fluffy cotton, and neatly tufted. Comfortable Chair Pads Bridge or tea parties can be far more interesting if the chairs are comfortable! Chintz pads, filled with soft cotton. Com- C plete with ties to fasten on chairs. UPHOLSTERY—FIFTH FLOOR. CLEARANCE—Chintz and Sateen $ 29 Bedspreads. Originally $1.95 to $3.95.... 1 = BEDWEAR—THIRD FLOOR. Special! 39-Inch All-Silk Washable Flat Crepe ' 49(: yard Smart frocks or dainty lingerie—you can have scads of them for almost nothing! Firm, washable silk crepe with a smooth suede finish. 35 shades for choice— pastels, vivid, dark—and plenty of white. SILKS—THIRD FLOOR. 2,500 Yards! 19¢ to 29c Grades Cool, Sheer Cottons 1 4c yard A cool daytime frock for 56c! Sounds absurd, doesn’t itP—but just figure it out! 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Every size in the lot—but not every size in each style, $2.95 to $3.95 Sandals White linen, white mesh or white calf— $ 95 in Summer’s most popular footwear— 1 . sandals. Sizes 4 to 8. $3.95 to $5.00 Children’s Shoes All white; white with tan or black trim; patent leather; brown elk or tan calf. A $ 49 slightly broken size range—for children, 1 . misses or junior misses. SHOES—SECOND FLOOR. Vacation Clothes for Men—Reduced HOT-WEATHER TROUSERS to match your odd coats. Tropi- cals and mohairs; light and dark $2.85 shades. ...... SPORTS TROUSERS; white with neat black or brown stripe. ‘Washable — and pre-shrunk! 29 to $1.49 42 waist ......... Any Sennett Straw Hat—Regardless $1-29 MEN'S CLOTHING—STREET $1LOOR. outfit for men! “Lansbrook” $ 1 2.9 5 Hot-Weather Suits 29 (036 $1.85 . Here’s a real value, men! Tropical worsted suits in medium and dark shades—a few with vests. Regular sizes and stouts to size 50. All-Wool Sport $12.95 Coats and Trousers ~ compiets Fashion can't produce a snappier warm weather Blue or tan sport coats—serge or flannel trousers, plain or striped. Sizes 36 to 42. - MEN’'S KNICKERS in the popular plaid “Silk-E-Twist” fabric. Only 38 pairs left! waist MEN'S KNICKERS in sturdy oyster white linen. Full cut—easy to launder. Sizes 30 10 $1-39 44 waist. .. Any Panama Hat—Regardless $ 3.45