DEBATE ON WAR DEBT

Evening Post, Volume CXVIII, Issue 31, 6 August 1934, Page 7

DEBATE ON WAR DEBT

AMERICAN'S SUCCESS

SIMPLE, NATURAL 1 SPEAKER

ENTERTAINING DISCUSSION

i Cancellation of war debts due to America was opposed on Saturday niglit by a young American debatei-. It was a refreshing and pleasant experience. The occasion was the first public appearance of Mr. Robert E. Bums, touring debater of Washington University, opposed to Victoria University College representatives, Mr. A. H. Scotney ana Mr. C. M. T. Brown. There was a large attendance-at the Town Hall. Professor .G. W. von Zedlitz presided. • • ;. ■ Mrl H. H. Cornish, Solicitor-General, made an award on the basis of "which side would be likely to make the best impression upon a neutral audience, or convince a neutral jury. In the opinion of Mr. Cornish, Mr. Burns won the palm.and maintained his unbeaten record on the tour.' That award can. scarcely be challenged; In any ' case the contrast of Mr. Burns's style-was like a tonic, a silent criticism, and his example should exert a most beneficial influence. . ' . ' The American was always composed and spoke simply, slowly, and persuasively. He possesses an aptness for quiet humour. There is nothing studied about him and he is bound to be popular wherever he goes in New Zealand. His • fellow debater, Mr. Spencer, could not visit the Dominion owing to his illness in Australia, Mr. Burns opened, seconded, and dosed'his case. ' VICTORIA'S OPENING. No progress had been made in payment of any of the. . capital of war debts, said Mr. Scotney.' The nations were unable to pay. The world's gold, supplies could not pay more than half > tho war debts. There, had been five suggestions as to the. solution of the problem: —(1) That debts should be exchanged for trade; (2) that Britain should return to the gold standard; (3) that America should use her position to ensure ' heavy reduction, in I armaments; (4) that the debts should, be scaled down; and (5) that they should be traded in for territory.. The adoption .of the first would mean merely exchange of "new debts for old." The second was impossible:. Britain left the gold standard for no reason to do with war debts. If armament expenditure was reduced, the taxpayers would be relieved and European goods would compete with American, goods in America. The fourth meant merely shifting the burden. As to exchange of territory, the Stimpson plan operated against it. Americans asked, "did not we send Europe the goods? Is it fair we should : not; be > paid for them?" No one had said it was fair, said Mr. Seotney. Was'the San Francisco earthquake fair? , All the money and goods were lost from, the beginning. AMERICAN ARGUMENT. Europe hired the goods because she needed them, said Mr. Burns. America thought Europe could/pay if Europe wanted to pay. Mr. Burns said he must first establish two, things—whether the nations could pay and whether they wore willing to pay. Expenditure upon armaments showed ability to pay. So • did European deposits in America. The British Customs receipts had increased to twice the amount collected in America, whose duty-free goods had increased. As "Punch" had said, "the nations should pay for the last war before they embark upon another!" As to willingness. to pay, Britain had no desire to default, < but expected readjustment o'f the whole debts. America had a huge standing debt which must be Tetired. Europe should pay half at least and America no' more than half as an attempt to grapple with the problem by agreement. .-'. ' ; "A VICIOUS CIRCLE." Mr. Burns had been speaking from the viewpoint of the hard-headed American business man, said Mr. ; Brown. It ■ was in America's own interests to cancel. It was not indebtedness that counted in the.'balance of trade, and the same; vicious, circle was still going on from America to-Germany to Britain and France back,to America. America had achieved an astounding success in keeping foreign goods from her markets; she was the one country that had emerged from the war stronger economically. She should cancel war debts or' indulge in foreign trade. To ' cancel was merely to maintain the status quo. An American correspondent had said, "I am one of. the millions who did not go to the war: probably a Frenchman took my place and was killed. I object to' having his widow pay for the shoes he wore out in. my place." (Applause.) WASHINGTON'S ANSWER. Mr. Brown's argument, retorted Mr. Burns, was equivalent to.saying, "The Allies cannot pay because' they will not pay; and even if they could, we won't let them." (Laughter.) America wa» making it possible for foreigners to ship more goods to America by "removing pro* tection from industries which Sid n<£ deserve it, and others which could neve/ grow tip "except to put their shareholders'on. the shady side of Eas» Street." Payment could be made (If in terms of duty-free goods; (2) i* terms of American securities hel* abroad. Cancellation was subject t» fundamental objections. First .it woulf destroy the sanctity and legality of in« ternational obligations. The world wa» threatened with international credit, collapse; cancellation would be danger* ous. Mark the ease of Greece, who caw celled her.war debts; and then caw celled hdrprivate debts. Cancellation would transfer the "burden froto European debtors to the American people, who were loaded already with 80 dollars per capita, or 320 dollars per taxpayer. Still the American Government' was going into debt faster than ever before. Wise revision was the solution, THE JUDGE'S OPINION. Mr. Burns had the advantage that h« had delivered his speech several times before, said Mr. Cornish, but all things considered, the palm must go to Mm. In subject matter there 'had not been a great deal to distinguish him. from.. Mr. Seotney, who might even be placed first. Judged on language,,Mr. Brown was first. But the best-balanced argument was that of Mr. Burns, although his closing was far too long. The closing speech should take not more than two minutes. But Mr. Scotney also had been lengthy, and the defects cancelled out. Mr. Burns wa<3 more conciliatory and persuasive. -Mr. Scotney and Mr. Brown scolded and dragooned their creditor. It was. rather .amusin' to see a creditor almost apologetic.