BRITAIN’S WAR DEBT

Dominion, Volume 16, Issue 88, 10 January 1923, Page 5

BRITAIN’S WAR DEBT

OPENING OF FUNDING COMMISSION

SPEECH BY MR. STANLEY BALDWIN

FAIR SETTLEMENT WANTED

At the opening of the Debt funding Commission Mr, Stanley Baldwin, the British Chancellor of the Exchequer, said Britain desired to pay every cent of the debt to tho United States, but wanted to find a method of doing so that would least upset tha trade relations of the two countries.

BY TELEGRAPH— PBESS ASSOCIATION, ■iHsiaxaoo—(Rec. January 9, 11.25 p.m.) Washington, January 8.

Mr. Stanley Baldwin, in his speech at th© opening of the Debt Funding Commission, declared: “We have come to express our intention of repaying our debt. It is our way to nay as we go so far as we can. From that fixed principle we have no intention to depart. Our total annual per capita taxation is still greater than that of any other people. It amounts to more than 160 dollars per head of the population. Further taxation would decrease the purchasing power of the British working man and reduce our consumption of American products. There would b© diminished export for American cereals, cotton, meats, and other products. Desirous as we are to maintain th© social ecale of our workers, the effect of additional taxation would inevitably depress it. From the consequences of that I do not see how America can escape.

American Working Man’s Social

Position.

“The social position of the American working man, raised to its present level in some measure as. the result of the war, is now the highest in the world; but if wo are unable to buy from you, if we aro forced by stern necessity to economise still further and to buy from you only those things which we must. have, but in. greatly reduced quantities, the American farmer, as well as the American working man, will feel the pinch. He likewise will bo compelled to economise. . He will have to do with less. He will be brought down to a lower level of living. The payment of our debt to you will impose upon us the necessity of levying heavy taxes to meet these payments?’ Britain’s Economio Condition. Pointing out that Britain had made great sacrifices to balance her Budget, Mr. Baldwin declared: “We were affected by the terrible economio situation of Europe, and aro passing through the Worst period of unemployment in our history. Having regard, to all these circumstances, the British Government has to consider very carefully the terms of the liquidation of the debt, lest the annual obligation be such which it might be impossible to meet in years of bad trade and falling revenue. In common with the rest of tho world, we have watched with admiration the open-handed charity of America to the stricken countries of Europe. The generosity of America Is proverbial, r but wo aro not here to ask favours or impose upon generosity. We want such terms as will produce the least possible disturbance in tho trade relations of tho two countries — a fair business settlementj a square (leal; a settlement that will secure for America repayment to the last cent of Hlhose credits which the United States Government established in. America for us in her association in tha war. I wish to approach the discussion as a business man seeking a business solution, of what is fundamentally a business problem. We intend to pay, but how best can international credits bo made liquid when the creditor nation is unwilling to permit liquidation through direct delivery of goods, and also unwilling to see the current., of her products to the debtor nation interrupted, and when the debtor nations are unwilling to- be put in the position of being unable to buy the products of tho creditor nation. Prompt agreement between the two great democracies in the world on this question will bo a long step towards tho solution of Europe s economic troubles, but unless tho problem is solved there can bo no general revival of international trade.”—Aus.bf.Z. Cable Assn.