WAR DEBT PROBLEM

Evening Post, Volume CV, Issue 24, 29 January 1923, Page 7

WAR DEBT PROBLEM

AMERICA POLITICALLY A COUNTRY PEOPLE/

IGNORANT OF INTERNATIONAL

TRADE.

(UNITS* .PRESS ASSOCIATION.—COPIRIGHT.)

(AUSTRALIAN - !«W ZEALAND CA«« ASSOCIATION.)

(Received 29th Jaruary, 9 a.m.)

LONDON, 28th January.

Mr. Stanley Baldwin, Chancellor of the Exchequer, in an interview, said that the great difference between America and Britain was that in the States the final settlement of the debt question was in the hands of politicians. The Secretary of the American Treasury could undoubtedly have arranged terms with the British Government, had it been desired, but the- matter had heen immensely complicated by getting into the hands of Congress. It had tp be remembered that America,, politically, was still a country people, the bulk of whom had no knowledge of international .trade. The majority of Senators came from agricultural and pastoral communities. Whether the debt was funded now or in the future, it oould only be funded on such terms as could be got from Congress. There had been an advance »in American opinion in a very short time regarding the debt, but it .was hardly possible that Congress would be able to eat its own words and reduce the terms from 6 per cent, over all, to 3.0r 3£ per cent, for a period.of nine years. It was a matter of opinion whether.it | would be possible to fund the debt for I many years. The American people as I a whole thought they were' behaving with extraordinary generosity in making the offer they had made He was afraid the English people would not think so. There was no hope at present of getting America to offer better term?.. With interest afc 3A per cent, the annual amount' v.ould be" about £30,000,000. "He thought that the strain of paying 4 or 5 per cent. . on the whole debt would be greater than' Britain could carry. If we'had to pay 5 per cent.,'as we were bound to do by the original arrangement when the debt was contracted, the accumulated interest would have to be added to the capital year by year. That would mean that Britain would only be paying money on account, and tKe debt would increase year by .year—a ghastly thought.