"PAINFUL PAGE."

Auckland Star, Volume LXI, Issue 62, 14 March 1930, Page 7

"PAINFUL PAGE."

CIVIL WAR DEBTS.

Repudiation by Eight American

States.

HOUSE OF LORDS DEBATE,

(United P.A.-Electric Telegraph-Copyright)

LOXDOX, March 13. •

The question of the repudiated Civil War debts of certain States in America Avas again mentioned in the House of Lords yesterday by Lord Redesdale. He asked whether the Government would consider the advisability of representing the matter to the United States with a view to an early adjustment.

Lord Bedesdale said the total sum (including interest) owing by the eight defaulting States was £78,000,000, or about one-twelfth of Britain's war debt to America. There was considerable feeling in America about the defaulting States, and the Washington Government might welcome an invitation from Britain to reopen the subject.

.Such an action would raise America from the level of Russia in the matter of the repudiation of debts. In the words of one of America's former Presidents, Mr. Roosevelt, it would erase from the history of that country a "painful and shameful page." Lord Ponsonby, in replying, said successive British Governments since IS4I had always refused to make representations to the American Government on the subject. They realised that the Federal Government was in no way concerned with the obligations of individual States, and had no power to compel defaulting States to pay their debts. There was no likelihood of the Federal Government taking any liability in the matter, particularly as it was impossible to supply definite and reliable informa- , tion on the subject. Lord Ponsonby added: "I think the present is a most unfortunate time to make such speeches as Lord Redesdale's. There is no connection whatever between the repudiation of these States and Britain's war debt to America." Lord Redesdale objected to the Naval Conference being used as a "smoke screen" to prevent free speech in the House of Lords. The debate then closed. The debts, which, two years ago, were computed to amount, with interest, to at least £65,000,000, have been in existence from 55 to So years, and are mainly owing to British bondholders, who have made repeated unsuccessful attempts to obtain repayment. A movement to persuade the United States Government to repay the whole of the repudiated debts was initiated in May, 1925, by the ScrippsHoward newspapers, which are published in 25 American cities.