Show t V V A Washington Da Daybook i I f V n By fly RODNEY BUTCHER DUTCHER WASHINGTON July 17 About 17 the he only audible note of ot criticism of the Hoover war debt moratorium proposal has been twang twanged d on the tho theory that it was WM being made at athe atthe atthe the he behest of and primarily for tor the benefit of those old bogies the International International International Inter Inter- national bankers banke because of huge American private investments s in Germany From France Franco came the seemingly seeming seeming- ly cynical explanation that Hoover had acted to protect and American stake of ot nearly neary in Germany Ger Ocr many and during the recent negotiations at Paris 1 it was more than once suggested that Hoover dared not let the Mellon Laval parleys parley all IaU alland and so ro endanger tho those private loans There Is a ta tacit lt general view here however that the private American Investment is 15 only one of several Im Important tm- tm factors which the president took cook into consideration It does appear appear ap ap- ap pear on the basis of both surface facts and private admissions that Hoover would not have called for the moratorium moratorium certainly certainly not so 80 soon- soon had it not appeared that the 3 3 investment was in peril But 1 if Germany had crashed economically eco ceo and politically not only might that stake have gone The whole system of ot debt payments payments- theoretically worth many more bil lions to our people people gone down as well the worlds world depre depression ion would havo been jn intensified cd Germany Germany Ger Ocr many might have gone bolshevik and the worlds world's system credit would have taken an awful wallop T These csc I other considerations even in the tho number of dollars involved seem to tofa toto toto to fa the three billions w we have put into Germany The suggestion that the international international international bankers banker stand to benefit most mosto doesn't o nt get very far because American Ameri Arnert can investors in rather than financiers arc are the ones who would be holding the bag on German loans Some of the New York banks doubtless hold German bonds in quantities but the bonds are scattered over the country American Investments hi in Germany Include to in German bonds about 1000 in German stocks industries and merch merchandise advances and perhaps perhaps per per- haps In short hort term cred cred- its The amount amoun of the short hort term credits fluctuates widely a Wall Wallstreet street rumor not long ago said they had recently run up to which pr presumably was an lion tion A large scale withdrawal o ot these theu loans by British and American bankers was a factor in the which existed when Hoover macj his announcement Theoretically we have another 20 20 coming to this country from Germany for that is what out our European debtors are scheduled t to pay us under existing debt funding agreements and under the Young plan they are supposed to get tha that much and more from Germany Nevertheless the American vale Investment In Germany is tei times as 3 large as the sum of at In debt payments which th tha United States will forego this yea and the future of ot reparations deb payments has become highly Newspaper men here have beer been t told ld that thai President Hoover wha made mado his announcement in sudden h haste te on June 20 20 had been advised that Germany was going to declare a moratorium on both reparations anti and private debts on June 22 And AncS although it is 15 impossible to bring proof of ot that story it is widely be that tho the German gov government ent w was wa's s ready to throw up its han hand and tell the world You cant can't ge get ge blood out of a turnip The Germans believed it Is said Mid that the thc United States and England forced to save what they could would have united to restrain France Franca from sending her armies into Ocr Ger many They felt that their only course was to force a new deal which is 15 what happens when a 8 nation nation- Mexico for example example defaults defaults on i it debts Naturally they still hope for forthe forthe forthe the new deal without taking such uc drastic action now that Hoover h ha haj intervened and there is a growing suspicion that they are going get it Our Investments in Germany vC wore a tangible asset et that could most readily be protected whereas fin fu ture reparations and war debt col were hypothetical To tha that extent it would appear they figure very importantly in speeding Hoovers Hoover's i er ers er's action |