REPAYMENT OF AMERICA

New Zealand Herald, Volume LX, Issue 18294, 10 January 1923, Page 7

REPAYMENT OF AMERICA

BRITAIN'S FIRM RESOLVE.

METHOD THE DIFFICULTY.

FEAR OF TRADE 1 PARALYSIS:

CONSULTATION OPENS. X

By Telegraph— Association— '■; (Received 8.5 p.m.) A. and N.Z. v WASHINGTON, Jan. 8. Mr. Stanley ;: Baldwin, British Chancellor of the Exchequer, in a speech at the opening of the conference of the British and United States Debt Funding Commissions, declared: "We have come with the express intention of repaying our debt. It is on practical difficulties in making internatnonad payments that we are about to consult with you "in order to accomplish the aim we both have 'in view. It is our way to pay as we go as fair as we can, and from that., fixed principle we have no intention to depart. "Our total annual per capita taxation is, still greater thatn that f ?of any other people. It amounts to more than 160 dollars per head: of the population, Further taxation would decrease the. purchasing power of the British workingmen and reduce our consumption ot American products. There would be diminished export for American cereals, cotton, meats, and other products. Desirous as we are to maintain the social scale of our workers, the effect of additional taxation would inevitably, depress it. From the consequences of that I do not see how the United States can escape. v ' : ..:. • ' '

" The social condition of the American working man, raised to its present level in some measure as a result of the -war. is now the highest in the world, but if we are unable to purchase from you, if we are forced by stern necessity to economise still further and to buy from you only those things we must have, but in greatly reduced quantities,'. the American fanner, as well as the American workingman, will feel the pinch. He likewise will be compelled to economise. He will have to do with less. He will be brought down to a lower level of living. The.payment of "tfur ' debt to you will impose upon us the necessity of levying heavy taxes to meet these payments." ■ ; '[;. Pointing out that Britain had made great sacrifices to balance her Budget, Sir Stanley Baldwin declared: "We are affected by the terrible economic situation of Europe and are passing through the worst period of unemployment in ; our history. Having regard . \ for; all these circumstances the British - Government has to consider very carefully the terms of. liquidation of its debt lest an annualobligation be assumed which it might be impossible to meet in years of bad j trade and falling revenue.- In common with the rest of the world we have watched with stdmiration the open-handed charity of the United States to the stricken countries of' Europe. The generosity of the American is proverbial, but we are not here to ask for favours or impose upon generosity. "We want on such terms as' will produce the least possible disturbance in the trade relations of .the two countries «*, fair 'business settlement, a square deal, a settlement that -will? secure for the United States repayment to' the la»Oerii' ; of those erudite which the United States Government established in ;.■' the United States for us, in her association in . the war. I wish to approach the discussion as ■'■■■■a -business man; seeking a business; solution of what is fundamentally a business problem. We intend to pay, but how best ' v can international credits be made liquid when; the creditor nation is. riot willing to permit liquidation through direct delivery of goods, and is 'also unwilling to see the current of her products to the debtor * nation interrupted, ; and when the debtor nation; is unwilling to be put in a position of being unable to buy the products of the creditor nation? Prompt agreement, of the two great democracies in the world on this question will be' a long step toward e\ solution of Europe's economic troubles, \ but unless the problem is solved there' can be no general revival of international trade."