PresidentialPositionsIssuesReceptionTimelineDocuments

Work in progress — cycles are added one at a time. Every quote is machine-verified against an archived source; follow the links to read it.

1932 › Alfred E. Smith (Democratic) › European war debts and reparations

A twenty-year moratorium on the war debts, writing them off in proportion to each nation's purchases of American goods

pledge_forwardspecific_pledgereportedevidence B Diplomacy & International InstitutionsTrade & Tariffs⚡ European war-debt crisis similar solutions · similar reasoning

Solution

Suspend intergovernmental debt payments for twenty years and cancel debt in proportion to the debtor's trade with the United States — converting the debts into an instrument for reviving exports.

Rationale

Debts cannot be collected while trade is dead; linking write-offs to purchases makes Europe pay in American goods and jobs.

Verbatim text of the speech is not archived; the Evening Star's front-page report (April 14, 1932) is the source. The proposal directly contradicted the platform plank against cancellation adopted two months later.

Statements (2)

1932-04-13 · Jefferson Day dinner, Willard Hotel, Washington (Evening Star report) · primaryreported ✓ verified
With Alfred E. Smith threatening to fight to a finish the candidacy of Gov. Franklin D. Roosevelt for the presidency and at the same time de manding a 20-year moratorium on the debts owed the United States by foreign nations, the Democrats were wondering just where their party was headed in the coming campaign.
1932-04-13 · Jefferson Day dinner, Willard Hotel, Washington (Evening Star report) · primaryreported ✓ verified
Ex-Governor of New York Proposes to Write Off Debts in Propor tion to Trade With U. S.

Follow-through

not_applicable

Smith lost the nomination. No moratorium was granted; the debts went into default in 1933–34.

Enacted by others

1934-04-13Franklin D. Rooseveltstatute Johnson Act (default acknowledged) source

Other positions on this issue

1932-smith-twenty-year-debt-moratorium · created by claude-fable-5-1 · review: unreviewed