The Hawera Star THURSDAY, NOVEMBER 17, 1932. WAR DEBT MORATORIUM.

Hawera Star, Volume LII, 17 November 1932, Page 4

The Hawera Star

THURSDAY, NOVEMBER 17, 1932. WAR DEBT MORATORIUM.

Delivereo evening By 5 o’olook in Hawera, Manaia, Kanpokonui, Otakeho, Oeo, Pihama, Opnnake, Normanby, Okaiawa, Eltham, Ngaere. Mangatoki, Kaponga, Awatuna-, Te Kiri. Mnhoe. Lowgarth, Manutahi, Kakaramea, Alton, Hurleyville, Patea, Whenuakura, Waverley, Mokoia, Whakamara, Ohanga i, Meremere, Eraser Road, and Ararata.

The extension of the Hoover war debt moratorium by another year lias been forecast from Washington and, although the die-hards of the United States Congress are already busy denouncing any such move, there is'good reason for believing that Mr Hoover’s actions will confirm the prediction that has been made by “highly placed officials,” according to the cable news. There is plenty of evidence' to* show that the world is near enough to that point of economic exhaustion-to make .reconsideration of the debt question imperative. If conditions' in June of last year justified the Hoover moratorium, there is no doubt that conditions to-day at least justify its- extension.,' President Hoover’s proposals were a welcome gesture of goodwill, but they were more than that: America could see that she could not claim what was due to her without doing serious harm to her debtors and injuring herself at the same time. In June, 193.1, it was hoped that another IS months would see tlie world’s economic troubles ended, but they are not. Although all enlightened Americans must be able to see that the era of war debts is ending, that it must end if all nations are to have a fair chance of recovery, there will be a considerable body of opinion in favour of giving nothing away, even though the ultimate advantages of doing so are unmistakably apparent. President Hoover, although definitely against cancellation, is in favour of modification if compensating trace facilities are given and' he has again referred to the relationship between debt repayment and disarmament. If the money is available in Europe for huge armament expenditure, Americans ar,e entitled to ask why debts should not be honoured. America cannot be expected to make immediate concessions, and she will not forfeit what she regards as her rights unless it can be shown that she will benefit in some i other way. If, however, the European nations are freed of their obligations, they will be in a position making new trade with America almost automatic. War debt modification, if not cancellation, plus reduction of other barriers to trade which should be agreed- upon at the World Economic- Conference, would bring general prosperity. The latest British Note to the United States, suggesting suspension of payments pending the outcome of negotiations for final settlement, is carefully drafted with a view to avoiding any statement unpleasant to America. All that is asked is reconsideration of interGovernmental indebtedness, with payments suspended while negotiations are in progress. Some may think that Great Britain has adopted this attitude because she would be embarrassed by having to make the payments which are due next month. That point, however, 's of minor importance, and at best «an only provide material for speculation. The important one is that Great Britain, France, and probably Italy, are determined now that war debts should at least be considerably amended. The dismal truth is that even though default may not be necessary now, it would soon enough become so. The trade of the world is growing more crippled every xlay, and one of the principal causes of this is war indebtedness. As long as the energies of the nations have to be devoted to the end of meeting these obligations, there is no chance of lasting recovery from the troubles of these times.