NORTHERN ADVOCATE DAILY THURSDAY, SEPTEMBER 13, 1932. WHAT WILL AMERICA DO?

Northern Advocate, 15 September 1932, Page 4

NORTHERN ADVOCATE DAILY

THURSDAY, SEPTEMBER 13, 1932. WHAT WILL AMERICA DO?

Registered for transmission through the post as a. Newspaper.

“We have finished Avith reparations, and the Young Plan is dead, never to be resurrected. Never Avill it be possible , to demand from us more than Avas agreed upon at Lausanne.” So said, according to a cable message published yesterday, Herr von Papen, Chancellor of Germany. A statement of this kind Avill * no doubt be applauded by the German people, avlio, lioavever r -may find that their Chancell onhas-made a more SAveeping boast than circumstances ,-AV-ar-rant. Germany’s liberation from her obligation to pay ■ reparations to the creditor r Powers r; .depends upon the extent to which; -those creditor PoAvers are relieved by those to Avhom thoy, in turn, are debtors. This Ava%made perfectly clear in. a document signed at Lausanne, on July 2. On that date, the Ch a n c ell or. of 1 h e. E xehequer for.; Great .Britain, and the official representatives of France, Belgium and Italy, put their signatures to .a f proeesA r erbal Avhieh reads as folloAA T s: “The Lausanne Agreement Avill not come into final. effect until after ratification. . . . .So far as the Creditor- Governments, on AAdiose behalf this proces-verbal is initialled are concerned, ratification AA'ill not be effected until a satisfactory settlement has been reached between them and their OAvn creditors. . . , If a satisfactory settlement • about their oavu debts is reached, the Creditor Governments, Avill ratify, and the agreement Avith Germany AA’ill come into full effect. But ( if no such settlement can be obtained, the agreement Avith Germany will not be ratified; ariCAV situation AA T ill have arisen, and the Governments interested AA’ill have to consult together as to Avhat should be done.- In that event the legal position as between all the Goveimments Avould revert to that Avhieh existed before, the HooATer Moratorium.” It is this procos-verbal which clothes with so much interest speculation regarding America’s attitude toAvards the cancellation or reduction of Avar ddbts. Britain, it has been stated authoritatively, will pay on December 15 the full amount of Avar debts Avhieh will fall due on that date. This decision, of course, is subject ' to) the United States failing to" grant an extension of the Hoover Moratorium or deciding to cancel Britain’s obligation to pay. There is no outAvard sign of such an intention, though careful observers have discerned indications that leaders of the Administration contemplate the granting of some measure of relief. No moA’e in faA’our of the cancellation of Avar debts or insistence upon their payment is likely to be made before the Presidential election takes, place in November, but there is groAving a .body of public opinion in favour of America meeting Britain and other debtor nations as they have indicated their readiness to meet their debtors. For example, Mr. Walter Lippman, the distinguished American journalist, recently contributed a striking article to the Ncav York “Her-ald-Tribune,” the chief organ of the 'Republican. Administration. “Britain,” lie points but, “borroAved a total of slightly more than 4.000,000,000 dollars (£BOO,000,000 at par) and Ave have already received from Britain almost 2,000,000,000 dollars. This means Hint avc have already received 47 cents, of every dollar lent. Is it decent to talk as if Britain Averc a dishonest debtor trying to frisk our pockets, Avhen she has already delivered to us gold, or its equivalent, equal to nearly half the. value of the. munitions and food she bought here at prices more than tAvice Avhat they are today?” Britain has not asked for relief, and Avill not do so. From America must come an offer of relief, Avhicli, doubtless, Avould bo gladly accepted. If America insists upon her pound . of flesh, Britain, France. Italy and Belgium Avill be unable to ratify their condi-

tional ■ cancellation of Germany’s debt to them. Germany, it has been definitely stated, cannot pay reparations; Herr von Papen says Germany will not pay. What, then, of the future of Europe? America has on her head a tremendous responsibility/ W.hat will she do about it?