CASE FOR REVISION

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

CASE FOR REVISION

MB, ROOSEVELT'S VIEW

"TREAT WITH EACH NATION"

LENIENCY TO DEBTORS

ADVOCATES WELL IMPRESSED

By Telegraph—Frees Association—Copyright (Received November '2l, 5.5 p.m.)

NEW YORK, Nov. 23

That Mr. Roosevelt is cautiously pushing the door open toward debt revision is the most important conclusion of observers who followed flic (wo days' period of multifarious inter-party conferences in Washington. However, these conferences have added to the confusion existing in the minds of the people of America relative to a settlement of the knotty question on a basis of intelligent self interest, if not generosity. Mr. Roosevelt, in a statement issued from his train to-night on his way to Georgia for a rest—indicating that he disagreed with Mr. Hoover's conclusions, principally on the matter of the recreation of the Debt Commission, preferring to treat with each nation separately through diplomatic channels—has created a favourable impression among those seeking leniency for the debtor nations.

Mr. Roosevelt said: "I firmly believe that the individual debtor should at all times have access to his creditor and should have an opportunity of laying facts and representations before Irs creditor. " 1 think the creditor always should give courteous, sympathetic and thoughtful consideration to such facts and representations. This principle applies to nations as well as individuals."

Payments in Foreign Currencies The lack of a clear-cut and definite outline of policy on the part of Mr. Roosevelt, however, is not considered surprising. ?dr. J. N. Garner touched the nerve of the matter in his statement to the effect that 150 new members of Congress have been elected and no one can tell what will be their opinions. Even as the principal conferences in Washington concluded tho representative of the Polish Government handed to the State Department a Note also asking for a postponement of payments and revision of her debt. It was rather an anti-climax for the Secretary of State, Mr. H. L. Stimson, who handed a reply to tho representative of France almost simultaneously and similar replies wore being drafted for other nations virtually presenting Mr. Hoover's conclusions. The President's modification of his known opposition to suspension of the December 15 payments, by suggesting that they might be made in foreign currencies with tho transfers delayed, is generally considered as especially applicable to Britain. With half tho world stabilised to sterling there.is deep anxiety in the United States lest a forced payment by Britain at this time might depress tho pound to the point of the demoralisation of foreign commerce.

Now Note from Britain Expected Although the leaders of Congress at today's conference in White House were unanimously opposed to a suspension of the December 15 payments they indicated that Congress was to be convened for December 5 and probably would not oppose the payments being made in foreign currencies.

Intimations from London that the British Government did not, believe the door was irrevocably closed against further Anglo-American discussion of the advisability of a postponement of payments were sympathetically received in Washington.

It is expected that, a new British Note, will inform Mr. Hoover in detail of the conditions necessitating a postponement and that the presentation of the facts of tho question will be made immediately after the old Congress is reconvened for its last session.

Senator D. A. Reed (Republican—Pennsylvania) expressed tho opinion to-day that the President could conduct conversations with any of the debtor nations without action hv Congress, but All'. Hoover pointed out that tho rider to Congross' approval of last year's moratorium virtually tied the Executive s hands in this direction. President's View Broadened

There is considerable comment on the apparent broadening of tho President s views on the debt question as outlined in his statement, particularly his suggestion for interlocking the membership between the recreated Debt Commission and the American delegations to the World Economic Conference and tho Disarmament Conference. Mr. Roosevelt's intimated opposition to tho discussion of debts at the two lastnamed conferences is held to sharply contrast. with (lie President's view.

The past, week's nation-wide discussion of (he war debts question has brought forth observations from many well-in-formed quarters which contrast in an interesting way with statements in Mr. Hoover's pronouncements. Although there is no legal connection between debts and reparations it is felt that the attempt to keep them apart is only a quibble, since tho Dawes and Young Plans both were drawn up with tho American debt, payments in mind, and the war debt payments hitherto have been made from reparation payments. Europe's Armaments Expenditure Intimations that, the United States has already cancelled a large portion of tho debts are considered as unjustified in the light of the fact that the total funding arrangements provide for the payment over 62 years of 22,000,000,000 dollars principal and interest, or more than twice the amount originally advanced by tho United States.

Suggestions or inferences that Europe's ahility to pay is demonstrated by its increased expenditure on armament are considered open to qualification on examination. The United States' appropriations for defence have increased more than those of any other country. Expenditure for defence, furthermore, do not represent exported capital, which debt payments require and which foreign countries find it extremely difficult to make.