DEBT CANCELLATION

Dominion, Volume 25, Issue 171, 15 April 1932, Page 11

DEBT CANCELLATION

A Scheme for America MR. AL. SMITH’S PLAN “Forget it for 20 Years” WRITE-OFF ON PURCHASES By Telegraph—Press Amu.— -Copyright. (Rec. April 14, 7.35 p~) Washington, April 13. Addressing a group of distinguished Democratic leaders at th® annual Jefferson Day dinner, Mr. Al. Smith, a Democratic aspirant for the Presidency, proposed a modified debt cancellation scheme. • “Let us say to the nations of Europe who owe us money,” be said, “that we will forget about It for twenty years, and not only will we do that but we will write off as paid each year 25 per cent, of the gross value of American products which they buy from us. This means in effect that if a nation purchases a hundred million dollars' worth of our cotton we will forget about twenty-five millions of its indebtedness, and thj? same for wheat, fruit, tobacco, or any of our manufactured products.” Mr. Smith pictured the United States as "clamouring for the payment of debts which we know cannot be paid.” "The present method of demanding repayment,” he said, “is losing for the farmers, manufacturers, and working - men of the United States more billions of dollars than the whole European debt. This plan will start from the

ports of the United States, and will flood American-made goods into the homes and factories of our neighbours across the sea. We will in turn make concessions to them on debts which we know they are unable to pay. That will remove a menace to business throughout the world which is the greatest cause of the present uncertainty.” The diners enthusiastically applauded Mr. Smith’s proposal. The Washington correspondent of the “New York Times” states: “Mr. Smith startled the diners. His plan has met intense interest, but a minimum of open discussion. This was due to Its bluntness and to the fact that the Democratic political group seemed to feel that what Mr. Smith had obviously given much thought to was not a matter for quick opinion. The plan, however, has met. hostile comment from Government, circles. Members of the Senate for the most part have refused to talk about the proposal. Several of them have informally called it impracticable, but said that they might discuss it on the floor of the House.” The Issue is somewhat confused owing to the political situation, there being dissension between the Smith and Roosevelt factions of the Democratic Tarty with the possibility of an open break between them. How far this may overshadow the problems of statesmanship Involved in Mr. Smith’s proposal remains to be seen.