DEBATE ON WAR DEBT

Evening Post, Volume CXVIII, Issue 33, 8 August 1934, Page 8

DEBATE ON WAR DEBT

(To the Editor.)

Sir, —I unfortunately did not hear the debate on thre above subject, but some of the reasons advanced by Mr. Burns seem to mo to bo quite wrong. For instance, ho said, "Expenditure upon armaments showed ability to pay." This expenditure is in ''sterling" and is paid out to workers in Portsmouth, Plymouth, Chatham, and other British cities for work done and paid for with British money and materials. . Tho fact that the ship's may never be required is beside the question, since, if they woro sold to a foreign Power, it would, be quito good business. Wo can uso "sterling" to do either work for ourselvos or for another country, but we cannot pay America in "sterling" unless she will .take goods created by "sterling payments." We have to pay America; in dollars, and wo cannot buy dollars with sterling until we have first transformed sterling into goods. Mr. Burns said we could pay America "in duty-free goodsfc" but I know of ■no "duty-free" goods produced in Great Britain that are Available for this purpose. Practically, tho only goods admitted into America "duty free" are raw materials. The only raw materials available in Great Britain are coal, iron, slate, and unemployed people, none of which America -will take in payment of debt.

Another proof of Britain's ability to pay, tie said, was the fact that "the British Customs receipts had increased to twieo tho amount collected in America." Surely this is bad reasoning. Tlio chief cause for. tho imposition of tho recent Customs, duties was to protect British manufacturers, tlio fact that it brings in revenue is merely incidental. Britain was the dumping ground for the wholn world, and, iv absolut.o desperation, Brirjiiu hail to adopt a "protective tariff,"' but, Mr.

Burns surely recognises that, to the extent that it is revenue-producing, it is failing to protect British industry.

I think if America would accept payment for the goods she supplied during tho- war in goods manufactured in Britain today,- not-; only would there be do trouble* about paying the debt, but Britain would enjoy nu era of prosperity such as she had never before seen. • t ■ Britain's prosperity in the past was duo to tho. fact that she was doing an immense "time-payment trade," but unfortunately at the present tinio she lias lost -hor "timo-payment "customers." We produce immense wealth (not money) in. New Zealand, but as apparently nobody wants it, it'is. not available either to pay debts or to exchange for other commodities.—l am, PRANK COLBECK Morriusville, August 7.