VII

REMEDIES

than a maddened and exasperated heart, the inevit-able truth about the prospects of an indemnity fromthe enemy.

It might be an exaggeration to say that it isimpossible for the European Allies to pay the capitaland interest due from them on these debts, but tomake them do so would certainly be to impose acrushing burden. They may be expected, therefore,to make constant attempts to evade or escape pay-ment, and these attempts will be a constant source ofinternational friction and ill-will for many years tocome. A debtor nation does not love its creditor,and it is fruitless to expect feelings of goodwill fromFrance, Italy, and Russia towards this country ortowards America, if their future development isstifled for many years to come by the annualtribute which they must pay us. There will be agreat incentive to them to seek their friends inother directions, and any future rupture of peace-able relations will always carry Avith it theenormous advantage of escaping the payment ofexternal debts. If, on the other hand, these greatdebts are forgiven, a stimulus will be given to thesolidarity and true friendliness of the nations latelyassociated.

The existence of the great war debts is a menace tofinancial stability everywhere. There is no European country in which repudiation may not soon becomean important political issue. In the case of internal