The Manawatu Daily Times America Makes a Move

Manawatu Times, Volume LVI, Issue 7062, 23 January 1933, Page 6

The Manawatu Daily Times America Makes a Move

Although not nearly so absorbing a topic as Larwood’s ability to make an Australian batsman step lively, the definite move made by the United States president-elect to discuss war debts and other allied problems is likely to have a much wider effect on the well-being of the human race. Mr. Roosevelt has invited a British representative to go to America as soon after his inauguration on March 3rd as it is possible to send him, and the suggestion is made that either Mr. Ramsay MacDonald or Mr. Neville Chamberlain, Chancellor of the Exchequer, will be Britain’s envoy. While general satisfaction is expressed at this very definite move by the new president, a suspicion has been voiced that the linking of the war debts with the -world economic conference means that Uncle Sam proposes to do a little bargaining for the benefit of his badly battered foreign trade. After teaching the world the real significance of tariff walls, America now proposes to bargain -with Europe for the lowering of tariffs in return for debt adjustments or cancellations. This, of course, is quite a legitimate form of bargaining, but it must also involve very definitely the protectionist policy which has been the outstanding feature of the now defeated Republican Administrations. Nearly all thoughtful English observers of the AngloAmerican financial impasse, have been anticipating that the United States would introduce the tariff issue into the debt discussions, but they have pointed out also that the United States tariff walls have been the main factor in bringing the debt payments to a dead stop because they have forced the payment of debts in gold, instead of goods. “The cancellation of war debts would be a better piece of business, both for the creditors and for the debtors, than any other step they could take,” said the Hon. Alexander Shaw, in his first address as chairman to the annual meeting of the P. and 0. Company. “So far as Europe is concerned, the only continuing victims of the war are the victors. Is theirs to be the task, during this and the next generation, of trying to force into America by way of the repayment of war debt (in the only form in which it can be paid) goods and services which America does her level best to shut out ?” Mr. Shaw gave reasons why the only alternative—gold or further loans from America to Europe—were useless or impraeticeable. “We are therefore thrown back on goods and services,” he continued. “The position next year, so far as Great Britain is concerned, is that, unless agreement to the contrary is arrived at, we shall have to remit to the United States as the ordinary instalment of war debt- payment no less than about £60,000,000 sterling—at present rates of exchange a sum which is more than three times our present total annual exports to that country. Further, our imports from America are several times larger than our exports to her, and on trade account alone we have an adverse balance. “As regards payment of Avar debts by services, the Avhole position is much aggravated by the unwillingness of America to be paid in such serAdces, among the chief of which are those rendered by British shipping. The United States has hoav a policy of high subsidies to American-owned ships. This is indeed a fiscal curiosity, for it means that the American taxpayer is being mulcted in order to close yet another avenue by which Avar debts can be repaid to him—namely, the avenue of British shipping services. In every possible way the payment of debts due to America is blocked by American action. When then Avill that enormous sum be paid off ? Under any conditions conceivable at present the inevitable answer is short—‘Never.’ It is not a matter of Avillingness to pay, but of the possibility of paying.”