EDGE OF A PRECIPICE

Evening Star, Issue 21320, 26 January 1933, Page 9

EDGE OF A PRECIPICE

WARNING TO AMERICA THE WAR DEBTS BURDEN Press Association—By Telegraph—Copyright LONDON, January 25. Mr Neville Chamberlain (Chancellor of the Exchequer) in a speech at the Leeds Chamber of Commerce said he desired, for the information of American fanners and the public, to submit the following war debts balance sheet covering the period 1922 to 1931: Payments' by Europe to the United States: — War debts, £400,000,000. Interest on commercial loans, £1,000,000,000. / Surplus of European purchases of American goods over American purchases of European goods, £1,200,000,000. The other side of the balance sheet showed what America had paid : American tourists’ expenditure in Europe and immigrants’ remittances, £1,500,000,000. Shipments of gold, £100,000,000. Loans raised in the United States, £1,000,000,000.. Thus war debt payments had only been possible by American loans and European debt payments had only been possible by increased sales to America and by reduced purchases from America, the former involving a drastic reduction of American tariffs and the • latter, depreciation of our currencies, or higher tariffs against America. He was not using threats when he warned America that insistence on payments meant that they were approaching the edge of a precipice and were likely to drag us down with them. IMPORTANCE OF SPEECH STRESSED BY NEWSPAPERS. LONDON, January 25. 'The importance of Mr Chamberlain’s speech is emphasised by. the entire Press by the manner of presentation, if not by editorial comment. It is expected that Britain’s reply to the American invitation will be sent to Washington to.-day, \ ITALY'S PROPOSAL PAYMENT OF LUMP SUM. ROME, January 25. Italy’s commission when it goes to America, will propose a lump sum payment in finalsettleinent of Italy’s debt. The figure suggested is £20,000,000 at par. ' THE OTTAWA AGREEMENTS : ' WASHINGTON, January 24. The agreements reached at the Ottawa Imperial Economic Conference are likely to be among the subjects discussed when the British representatives confer here with the Presidentelect, Mr Roosevelt, regarding war d^bts. ALTERNATIVE SOLUTION LOWERING OF TARIFF WALLS. LONDON, January 25. (Received January 26, at 9 a.m.) In an article entitled ‘World Recovery and War Debts,’ i n ‘ Lloyd’s Bank Review,’ Mr Hal Fisher says; “Europe cannot say the word ‘default,’ and in view of the American Government’s, repeated declaration that such a solution is entirely unacceptable, Europe cannot ask the United States to say the word ‘ cancellation.’ Let America use Iver great economic position to press for a reduction of the high tariffs which arc throttling European trade and herself, by an offer of liberal tariff revision, and give an example which other nations may follow. The prime cause of the. present economic discontent is the existence of high tariff walls dividing State from' State.” MESSAGE TO MR ROOSEVELT BRITISH GOVERNMENT’S DESPATCH. RUGBY, January 25. (Received January 26, at 11 a.m.) Sir Ronald Lindsay handed Mr H. L. Stimson a message from the British Government to Mr Roosevelt stating that it would pe happy to' send a repre- *' sentative or representatives to Washington as soon as possible after March 4. It would bo glad to exchange views with Mr Roosevelt on other world economic problems in which the Governments were interested. Decisions on questions which would form the agenda of the World Economic Conference, In which many other States were concerned, naturally could not bo reached before discussions bad taken place at a conference between the States represented there. HO REDUCTION IN DEBTS DEMOCRATIC LEADER’S VIEWS. WASHINGTON, January 25. (Received January 26, at 12.5 p.m.) Representative Henry Rainey (Illinois Democratic floor leader) predicted to-day to newspapermen that “ No reduction or cancellation of war debts would result from the conference to be held after Mr Roosevelt takes office. The American people arc not going to stand for reduction in debts. The debt conferences should be linked with the World Economic Confcrencc. The tiling to do is to bring about a removal of international trade barriers, so that trade, can bo revived. The conferences already projected hold the only possibility of opening up tgido routes and giving our debtors a chance to pay.”