IN WASHINGTON: AMERICAN POLICY ON DEBT
Important statements from a senior official.

WILLIAMSTONE (Massachusetts), August 1. Mr. William R. Castle Jr., Chief of Division at the State Department, made some interesting statements yesterday at the School of Advanced Political Studies regarding the United States' attitude regarding war debts.
- «Cancellation of debts, said Mr. Castle, "would be a sign of weakness and would risk causing unrest in international finance. Yet, the United States is no Shylock. It will be firm, certainly, but will take into account its debtors' ability to pay.
This attitude of the United States is honest and generous. Honest because it does not impose on American citizens the burden of other people's debts without their unanimous consent; generous because we will not abuse our power to overestimate the debtor nations' ability to pay.
"The Administration," Mr. Castle continued, "does not intend to abandon the policy of non-intervention. It will continue to follow it not because it has become traditional in the United States, but because it believes it is the best. The Government will do everything in its power to bring about a lasting peace. President Coolidge has already expressed his confidence in the effectiveness of a security pact. Any attempt along this path must, to have any chance of success, be based on security and economic solvency.»

It would be desirable for America to be part of a world court, because such an organization will be the bulwark of peace for the future.