DEBTS AND REPARATIONS

Otago Daily Times, Issue 21544, 16 January 1932, Page 11

DEBTS AND REPARATIONS

SIR WALTER LAYTON’S VIEWS COMMENT BY DAILY MAIL (United Press Association.) (By Electric Telegraph—Copyright.) LONDON, January 14. (Received Jan. 15, at 10 p.m.) The Daily Mail, commenting on Sir Walter Layton’s speech, says; “Britain would be the hardest hit by the wiping out of war debt burdens, and the collapse would not be long delayed. We cannot hold all the troublesome babies for the universe or serve any longer as Europe’s fairy godmother.” Sir Walter Layton, editor of the Economist, speaking at the Eighty Club, said that war debts and the gold situation were not exclusively responsible for the crisis, which did not start in Germany. The debt situation was the main factor in converting the great recurrent depression into something that was threatening the entire economic system. We could not rebuild if the present situation was repeated. A provisional settlement was useless, and so was a moratorium. If all debts were wiped out Germany would have only £500,000,000 of internal debt, or £8 per capita; France £2,300,000,000, or £56 per capita; Britain £6,600,000,000, or £l5O per capita; the United States £3,200,000,000, or £27 per capita. Germany could clearly pay something, and a plan could be devised which would not be greatly harmful. There should be an agreement now to enable immediate reconstruction, and it would be highly desirable to wipe out the whole thing, thus removing the lingering source of irritation, the sense of war psychology. If it were done by agreement it would pay a thousandfold, and France should take the lead. There could be no economic reconstruction without a Franco-German agreement, to which the consent of Hitlerites would be necessary. If everybody tried to balance trade by stopping imports they would succeed in having everything balanced at zero.

FINANCIAL NEWS COMMENT. “ REPARATIONS FINISHED.” LONDON, January 15. (Received Jan. 15, at 10 p.m.) The Financial News says: “The feeling is steadily growing that whatever precise course is taken at Lausanne reparations are finished, and not all the intransigeance and obst’-jctiveness of France will avail to keep them alive. This feeling is strengthened not only by Signor Mussolini’s articles, but by reports that the British Cabinet is in entire agreement with the city that reparations must be ended rather than menfied. This may be facilitated by a short instead of a long extension of the moratorium to enable the Governments to tackle the final proposal.”