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Nitti, Francesco Saverio, 1868-1953

"Peaceless Europe"

S.A. infinitely greater damage than the
renouncing of all their credits.
To reconstruct Germany, to intensify exchange of goods with the old
countries of Austria-Hungary and Russia, to settle the situation of
the exchange of goods with Italy and the Balkan countries is much more
important for the United States and the prosperity of its people than
to demand payment or not demand payment of those debts made for the
common cause.
I will speak of the absurd situation which has come about.
Czeko-Slovakia and Poland unwillingly indeed fought against the
Entente, which has raised them to free and autonomous States; and
not only have they no debts to pay, being now in the position of
conquerors, or at least allies of the conquerors, but they have, in
fact, scarcely any foreign debts.
The existence of enormous War debts is, then, everywhere a menace to
financial stability. No one is anxious to repudiate his debts in order
not to suffer in loss of dignity, but almost all know that they cannot
pay. The end of the War, as Keynes has justly written, has brought
about that all owe immense sums of money to one another.


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