CANCEL DEBTS FOR MORE BUSINESS

Manawatu Times, Volume LV, Issue 6834, 15 April 1932, Page 6

CANCEL DEBTS FOR MORE BUSINESS

AI Smith’s Novel Idea FLOOD EUKOPE WITH U.S. GOODS United Press Association. —Ey Electric Telegraph.—Copyright. Received Thursday, 9.5 p.m. WASHINGTON, April 13. Mr. Al Smith, addressing a group of distinguished Democrat leaders at the annual Jefferson Day dinner, proposed a modified debt cancellation scheme. "Let us say to the nations of Europe who owe us money that we will forget about it for 20 years, and not only will wo do that, but wo will write off from the debts each year 25 per cent, of the gross value of American products which they buy from us. This is in effect that if a nation purchases 100,000,000 dollars’ worth of our cotton wc will forget about 20,000,000 dollars of its indebtedness, and the same for wheat, fruit, tobacco, or any of our manufactured products.” Mr. Smith pictured the United States as "clamouring for payment of debts which we know cannot be paid." Mr. Smith said that the present method of demanding repayment was “losing for the farmers, manufacturers and working men of the United States more billions of dollars than the whole of the European debt. This plan is to start from the ports of the United States and flood American-made goods into the homes and factories of our neighbours across the sea, and we will in turn make concessions to them on debts which wc know they are unable to pay. That will remove the menace to business throughout tho world which is the greatest curse of the present uncertainty.”

The Washington correspondent of the New York Times states: "Al Smith startled the diners. His plan was met with intense interest, but a minimum of open discussion. This was duo to its bluntncss and to the fact that the Democratic political group seemed to feel that what Mr. Smith had obviously giveii much thought, lo was not a matter for quick opinion. The plan, however, met with hostile comment from Government circles. Members of tho Senate for the most part refused to talk about tho proposal. Several of them informally called it impracticable, but said they might discuss it on the floor of the House. “The issue is somewhat confused owing to tho political situation, there being dissension between tho Smith anil Roosevelt factions of the Party, with the possibility of an open break between them. liow far this , may overshadow the problems of statesmanship involved in the Smith proposal remains to be seen.”