Since the election, the matter of the war debts has reached a point more crucial than when the moratorium was declared a year and a half ago. It is doubtful whether the internal economy of the various nations is anything improved since then, and international conditions certainly are not, Prompt and reasonable action toward the statement of war debts is essential to curing the world's distress.

The president has to date been more moderate and more intelligent than Congress in his stand on cancellation and reduction, an has once again demonstrated his reasonableness by his message to Roosevelt. Simultaneously with his invitation there appeared the report of the Sloan Committee, advocating another postponement and a reconsideration of the 1929 funding agreement. To these moves Congressional leaders have made only a negative response, standing pat against either reduction or moratorium. Their stubbornness is softened only by Borah's offer to trade debt reduction for disarmament. Whether this unyielding position will be endorsed when congress assembles in December is not predicable. One can predict a major diaster, however, if the nation's representatives finally refuse to give over their stupidity.

As the Sloan Committee reported, the first and indispensable need in another moratorium, giving time for a international conference on debts and reparations. America can either make the graceful gesture and grant England and France the requested extension, or it can face animosity and almost certain default when the time for payment comes. Substantial reduction, rather than cancellation, is the recommendation of the economists' committee. Considering the fall of world prices, the increased cost of American exchange to countries with a depreciated currency, the American tariffs, and other difficulties besetting all nations at present a readjustment is but common justice. Unless sentimental and "moral" considerations are set aside and economic realism substituted for them in America's attitude she will be the loser. The American people cannot seem to realize this. The only hope perhaps a forlorn one is that their representatives are wiser.