WAR DEBTS PROBLEM

New Zealand Herald, Volume LXIX, Issue 21253, 5 August 1932, Page 7

WAR DEBTS PROBLEM

POLICY OF UNITED STATES BONDHOLDERS* POSITION The position of the United States in the final settlement of the war debts problem was explained by Mr. W. H. Cocker in an address at the monthly luncheon- of the Auckland Chamber of Commerce, held in Milne and Choyce's Reception Hall yesterday, Mr. Cocker expressed the opinion that one of the very important factors that brought about the present difficult economic conditions was the attitude of the various nation# regarding reparations and war debts. He sketched the history of the movements to adjust the burden up to the Lausanne agreement. The centre of gravity concerning war debts had now shifted to the United States, said Mr. Cocker, and the future rested with that country. The real problem for the United States was just arising, for if she was to receive payftient for her war debts she must take it in the form of goods. The problem for the United States Government lay in the fact that if the debts were waived .the individual buyer of the Liberty bonds would have to be paid, and that would mean an additional burden on the general taxpayer. While it could be shown that it was in the interests of the United States that the debts should be cancelled, it was not so easy to convince tho individual taxpayer. After explaining the part played by the great financial houses of the United States in advancing loans to Germany in the post-war years, Mr. Cocker expressed the view that the United States was not yet ready for cancellation, but he thought she would be forced by circumstances to extend the moratorium. In- the meantime tho war debts might go, but he did not think so.