WAR DEBTS AND INTEREST

Hawera Star, Volume LIII, 26 August 1933, Page 11

WAR DEBTS AND INTEREST

T OED WAKEFIELD made an intOresting suggestion in regard to war debts a«t the 123rd annual meeting of the Nofth-Br.itish and Mercantile Insurance Company. Complete cancella. 1 - tion would, lie said, lie a wise and statesmanlike course, but failing this tube re Avals a Avav in which relief could be given by creditor nations,, to their debtors. That way Avoid'd be for them to give up all claim to interest and left all payments be treated ais instalments of capital. . The original debt of Great- Britain to the United 'States, lie pointed out, was over 4,000,000,000 dollars. Under five arrangement's now in force this its to be paid off in about. (50 years by half-year-ly annuities, and -the total Britain has thus contracted to pay is approximately 11,000.000,000 dollars. So far we have paid 1,000,000,000

dollars, of which 1,200,000,000 represents interest. Thus while the total paid is equal to one-third of the liability, the actual capital repay,mepfts have only boon on e-twentieth. He thought that in any consideration of the matter with the United ©fates that sum of i,b00,000.006 dollars treated a,s capital might be taken as a starting point. _ There is. a fascinating simplicity about the suggestion which is certainly Avorth keeping in mind, remarks a commentator. American public opinion. is still proving very difficult on. the subject-, and how far-Mr Roosevelt will feel julSli-lied in going has yet to be seen. As Lord'Wakefield continued, ho.w r over, there are signs of a real and’ growing desire to find an equitable solution, and Avith some “give and hake” on both sides;, it should be possible to reach a settlement.