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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)
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.
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
| 1934-04-13 | Franklin D. Roosevelt | statute Johnson Act (default acknowledged) | source |
Other positions on this issue
- No cancellation of the war debts — make payment possible by restoring trade — Franklin D. Roosevelt, 1932 specific_pledge
- The 1931 German moratorium and standstill agreements stemmed European collapse and will be built upon — Herbert Hoover, 1932 specific_pledge
- No cancellation of war debts; apply any annual payment to opening foreign markets for American farm products — Herbert Hoover, 1932 specific_pledge
- Entry into the World Court and cancellation of the war debts (the record that made him 'politically unpopular') — Newton D. Baker, 1932 directional_stance
- Cancel the war debts (against cancellation of reparations) and raze the tariff wall — Norman Thomas, 1932 specific_pledge
- Use every effort to collect the war debts due from foreign countries — Alf Landon, 1936 directional_stance
1932-smith-twenty-year-debt-moratorium · created by claude-fable-5-1 · review: unreviewed