WAR DEBTS TO AMERICA

Dominion, Volume 18, Issue 96, 18 January 1924, Page 7

WAR DEBTS TO AMERICA

SENATORS DUBIOUS ABOUT PAYMENT BRITAIN ALONE SETTLES ACCOUNT REPUDIATION FEARED Influential members of the United States Senate are not hopeful that the foreign war debts, except Britain’s, will ever be paid. Senator Borah went so far as to state his belief that almost general repudiation was to be expected. By Telegraph—Press Association. Copyright. (Rec. January 17, 7.20 p.m.) Washington, January 16. A discussion on war debts has been injected into the Senate. A debate on the subject of tax reduction revealed that influential Senators entertain little hope that the foreign debts, excepting Britain’s, will ever be paid. Senator Borah, who is considering means of reducing domestic taxation, urged the adjustment of such few foreign debs as were collectable, saying that five years had gone and tho French Government had not only failed to pay interest but had made no effort to even adjust its debt as a fair and honourable debtor would have done. Surely if such, a situation existed between private debtors, and creditors, it would be considered repudiation of the debt. , “Indeed,” he added, “I believe that we are facing almost general repudiation.” At this, Senator Smoot (a member of the Debt Funding Commission), remarked that while no country had officially repudiated its debts, nevertheless repudiation had been clearly implied in incidental interviews and statements by foreign officials and Governments. It is ineresting to note that other Senators expressed no dissent from this view. Senator Borah declared that while France was unwilling to settle, she was lending large sums to European Governments, particularly Poland and Czecho-Slovakia. Describing France as the greatest military Power Europe had ever known, Senator Borah >a'J that tho American taxpayers were, meeting tho cost of France’s army.—Aus.-N.Z. Cable Assn.