DEBTS TO AMERICA

New Zealand Herald, Volume LXIX, Issue 21349, 25 November 1932, Page 11

DEBTS TO AMERICA

NO MORATORIUM

MB. HOOVER'S DECISION

.DECEMBER INSTALMENT

PAYMENT REQUIRED

INQUIRY ADVOCATED

Hy Telegraph—Tress Association—Copyright WASHINGTON, Nov. 23

The President, Mr. Hoover, to-day declared himself as being formally opposed to a. suspension of the December 15 war deUf. payment's. Jlo recommended that Congress create "an agency to exchange mows'' with the debtor nations upon the international financial obligations. In the course of a lengthy formal statement. after a conference with leaders of the Republican and Democrat parties, Mr. Hoover said: "As to the suspension of the instalments due 011 December 15 110 facts have been presented by the debtor Governments which would justify such a postponement. "At the same time a United States Commission should lie. created to receive suggestions 011 the. war debt, problem and (•i report to Congress, making such recommendations as tlicv might deem advisable.'' Forms of Tangible Compensation 'Proceeding, Mr. Hoover said: "1 have stated on many occasions my opposition to the cancellation of the debts. Furthermore, .1 do not feel that tlie people of America should be called upon to make further sacrifices. " 1 have held, however, that advantages to ns could be found by other forms of tangible compensation than cash, such as an expansion of markets for the products of American agriculture and labour. There are other possible compensations in economic relations* which might, be developed on study, which would contribute to the recovery of prices and trade. Such compensations could bo made mutually advantageous. " These things might serve to overcome the difficulties of exchange in some countries and to meet the question of the inability of some of them otherwise to pay. It is nnthinkablo that within the community of nations and in the maintenance of international goodwill our people should refuse to consider the requests of friendly people to discuss an important question in which they and we both have a vital interest, irrespective of what, conclusions might arise from that discussion. '' Parley Regarded as Useless The Vice-President-elect, Mr. J. N. Garner, speaking at a press conference to-day, said he thought the members of Congress who attended the debt conference with Mr. Hoover had convinced him that Congress at present would decline to create «n agency to discuss the debts question with foreign Powers. ' Mr. Garner added: "There arc three questions involved in the whole problem, namely: Sliall we cancel the debts; shall we reduce the obligations; arid shall we have a conversation about tlieni ?

" Mr. Hoover is opposed to cancellation and is opposed to reduction, so what i$ the use of holding a conversation ? -

PRESS COMMENT MAGNANIMITY ADVISED TRIBUTE TO GREAT BRITAIN (Received November 2-1, 10.25 p.m.) NEW YORK. Nov. 24 It is estimated that if tho war debt payments due to the United States in the present fiscal year were cancelled it would only increase the per capita tax burden 220 cents, compared with approximately 415 cents per capita decline in the United States customs revenue during the past two years, caused by tho drop m foreign trade, which in no small part is attributable to war debt inequalities. The Boston Herald says a great nation cannot properly act otherwise than as an open-minded and magnanimous cieditor. The Baltimore Sun says:—"Tho outcome of the Hoover-Roosevelt conversation on war debts is more fiddling and more suffering."

The New York Times says: —"Lnless in this hour the English-speaking nations of the world stand together new dangers lie ahead. We must do our part, particularly in our attitude toward the nation which has shown gallantry and fortitude with its own titanic problems and high consideration for our own political difficulties end economic burdens. The New York Herald Tribune says "Americans aic so accustomed to having Mi. Hoover do the right and courageous thing that his admirable statements on v,ar debts wili hardly occasion much surprise." NEW YORK BANKERS SUPPORT FOR STERLING REPORTED ASSURANCE NEW YORK. Nov. 23 The New York Evening Post states that •crr.rding to persistent reports in the financial district of New York banking interests headed by Messrs. J. P. Morgan and Company have assured private London bankers that substantial credit will be advanced to Support sterling if necessary as the result of tho payment by tho British lieasury of the 95,000,000 dollars war debt instalment. due to the United States on December 15.