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Show 'MILFORD MAN URGES DEBT CANCELLATION Dr. W. F. Cottrell Speaks Before Be-fore Kiwanis Club in Oxford, Ohio Dr. W. F. Cottrell, son of Mr. and Mrs. W. F. Cottrell, of this city, and a graduate of the Milford high school in 1920, who received his Ph. D. at Stanford in June 1929, recently gave an interesting talk before the Kiwanis Kiwan-is club at Oxford, Ohio, advocating the cancellation of war debts. The Oxford paper says: With European countries unable to pay their war debts to the United States and with the spectre of default de-fault serving to undermine all other debtor-creditor relationships, Professor Profes-sor W. F. Cottrell of the government department of Miami University told the Oxford Kiwanis club Tuesday noon in a talk on "War Debts" that cancellation of these obligations is the best and only way out. Speaking before one of the largest groups which has attended a weekly luncheon meeting this year, Dr. Cottrell Cot-trell further added that the United States might attempt to use war debts as a means to insure world peace and prosperity by exacting promises armament reductions and currency stabilization from the countries coun-tries benefited. However, even if it is impossible to secure these concessions, Cottrell still believed that it would be to our own interest to cancel the debts as our own prosperity would be increased through the ability of foreign nations to buy once more in the American market which would more than compensate com-pensate for the loss. Dr. Cottrell pointed out that even if some of the debtor nations were in a position to pay their installments to the United States, the people of these countries would not tolerate such action. An example of this condition con-dition is found in France where the Herriott government fell because it favored payment of its obligation to the United States. Even in our own country, according to the speaker, the debtor-creditor relationship is weakening. Farmers in Iowa and other parts of the country coun-try were able to resist foreclosure through the unwillingness of sheriffs and constables to enforce these actions. ac-tions. Where sales were actually held the farmers ifnited to prevent high bids and the goods were returned return-ed to the farmers for a nominal sum free of debt. In opening his talk Cottrell briefly reveiwed the origin of the war debts, making clear that they were contracted con-tracted by governments for use in war and for reconstruction purposes. In addition to these government loans, private investors in this country coun-try also hold several billion 'dollars worth of fore'rn seduritres , which, for the most part, are in the same unstable situation as the war debts. Because of the great demand for goods, the war gave the United States Stat-es an opportunity to change its status sta-tus from a three billion dollar debtor nation an eleven billion dollar creditor credi-tor nation, exclusive of war debts. Our producing capacity was so increased in-creased that we were able to cut in on German and English markets abroad and while we were so busily building build-ing up our own prosperity we were cutting down the ability of European . nations to repay us. Dr. Coftrell then listed five methods me-thods Jy which payment of these war I debts would be possible. The first of j these, through the medium of gold, jwas dismissed as impracticable because be-cause there is not enough gold in the world to pay the 20 billion dollar debt. Even if this were tried the influx of gold to the United States would result in the sterilization of j gold and cause other nations to slip , off the gold standard. Higher gold prices in this; country destroy the ! purchasing power of other nations in the United States and also makes it cheaper to buy goods abroad where the currency is debased. Another method of payment is through services. As we have raised jour immigration barriers and have an J unemployment problem of our own, j we would not permit a huge influx of j workers. We also cannot accept their producton goods as this des-! des-! troys our own. This way was exhausted ex-hausted long ago. Other methods listed included the i use of goods, lands, and mortgages. jThe United States, through its high j tariff policy, discourages the imports ,of goods and attempts to maintain a favorable balance of trade. This auto- matically eliminates this proposition for the present. The United States also does not wish to take any territory terri-tory in exchange for the war debts for most of the land offered is valueless value-less and would entail expense in governing gov-erning and developng it. Finally, by shifting the war debt from liberty bond to private bond holders no solution solu-tion to this problem is obtained as j final payment is not assured and the risk is shifted from the people of the United States as a whole to those who have funds for investment. Dr. Cottrell 's talk was a repetition of a chapel speech which he made at Western College last fall. He was : invited to appear before the Kiwanis jeluh by President Ralph K. Hickok ;of Western College who is chairman of the program committee of the service club. |