THE PRIZE STORY

Auckland Star, Volume LXIII, Issue 288, 5 December 1932, Page 7

THE PRIZE STORY

U.S. AND WAR DEBT,

GARNER INTERVIEWED

"Too Busy With Beer , ' to Study Note from Britain. CHANGING OF OPINIONS. (United r.A.—Electric Telegraph—Copyright) (Received 11.30 a.m.) NEW YORK, December 4. 1 The prize story about the war debt negotiations developed yesterday in a conversation which a "Sun" representative had with Mr. J. N.. Garner,. •VieerPresident-clett.

The "Sun" representative says: "This eminent Texas statesman retailed what Iβ had said to Mr. Hoover recently, adding, 'I still think the same way. , then he continued, 'But you know, I have, not read this latest Note from Britain. I have not had time. I have been too busy with beer." ■.-,■

' "Mr. Garner in this matter has more power than the President. He will be •boss' of Congress in the coming lame duck' session, and next year he will be Vice-President and the presiding officer jn the Senate.

■'One oi tuo greatest aocumema in diplomatic history had passed,- and he (Mr. Garner) would not take thetrouble io read it, yet he was ready to jump into the -front column of the American Press with the positive declaration that Congress was not going to change its mind about it. '

"Congressmen repeatedly disclose that the changing of minds is one of the best things they do; '■ Mr. Garner himself, a few months ago, was one of the" ;ntist devoted believers in prohibition; - The people changed his mind for him. As a matter of fact certain , influential senators told me privately that the British position may, with great propriety, be reviewed, but none of them thought the December payment should lie postponed." -

The Government is understood to be preparing for a resumption of the war .debt payments on December 15 and to be seeking a method of collection which will.create the least possible disturbance in international exchanges. The general impression in Washington is that the British and French instalments will be met. The President, Mr. Hoover, is expected to refer the subject .to < Congress next week with a renewal of his appeal for the.recreation of the War Debt Funding Commission, but with a firm stand against postponement. . .. It is becoming plain that the United States wants some disarmament by European Powers on any programme of debt relief.

Move Against Tariffs Urged. Senator Cordell Hull, the Democratic tariff expert from Tennessee, sent a : proposal to President Hoover yesterday that the United States take the leadership in persuading the world Powers to cut tariffs 10 per cent, and mow down other artificial trade obstacles. If the nations accepted this programme, he said, America could reduce the debt payments.

Mr. Somers, Democrat member of the House of Representatives, from New York, proposes that Britain be allowed to repay her indebtedness in silver. Several movements linked with the remonetisation of silver developed in the Senate on Saturday in connection with war debt payments. .;.-.: Mr. A. L. Somers (Democrat), chairman of the Coinage Committee, suggested that Britain should be allowed to pay the December instalment in silver. Mr. C. Hayden (Democrat) followed iip this suggestion by proposing that all war debts should be paid in silver. Mr. B. K. Wheeler (Democrat) and others said they believed remonetisation of silver was essential for economic recovery.

Mr. Somers said the use of silver to pay war debts would increase its value, raise commodity prices and be the key to the solution of all future depressions. Insistence upon British payment in gold and the consequent further depreciation •of sterling would harm the United States probably more than Britain,

FOREIGN VIEWS. BRITISH NOTE SUPPORTED. LONDON", December 4. Continental views on the British Note are summarised by the "Daily Telegraph" as follows:—France regards it as. a frank appeal to the American Government's sense of realities, but fears the hint of eventual payment will react unfavourably on France. It is admitted .that if the British payments to r America are resumed Britain's debtors' are pledged to resume their contributions to Britain.

The first impression in Italy is that although the Note says nothing new it ia a further step toward the treatment of reparations, debts and disarmament »B one problem instead of three. This has long been the aim of Signor Mussolini.

Germany draws a parallel between the position of Britain and France and that of Germany in former days. They are described as using the same arguments as were employed by the Keich against the "fantastic reparation demands.*