WAR DEBT REVISION

Otago Daily Times, Issue 21598, 19 March 1932, Page 11

WAR DEBT REVISION

! AMERICA’S ATTITUDE ■ i / ■ i DISCUSSION IN SENATE. i . . ! WASHINGTON, March 17. I (Received March 18, at 5.5 p.m.) iA statement asserting that there was no* foundation for the suggestion that tie, administration intended to reopen negotiations for a debt settlement was made by the State Department on Thursday. This was followed by a Democratic attack in the Senate against revision of the British war debt, which brought a denial from Senator Reed on jbehalf of President Hoover that the subject was even under consideration. The •question had never been discussed with Hhe Ambassador (Mr Mellon), who was about to sail to London. Senator Reed said that debts should not be reduced or forgiven, because America had already been generous, and should not be asked to go further. Congress had decided plainly, he said, and it had been practically unanimously agreed by both Houses that the burden of war debts must rest where it properly belongs—on the people who got the money. Senator Glass (Democrat), who was Secretary of the Treasury when some of the war loans were made, sharply disagreed with both the Democratic and Republican speakers. He suggested that it might very soon become an advantage to the United States to modify, even to cancel, the debts. “ Suppose the European nations tell us in plain terms that they are unable to pay, are you going to accept their statement or are you going to war? I am convinced that President Hoover sees the circumstances, and Senator Reed does not accurately represent the views of the President.” Senator Reed; Obviously we are not going to war, but I can't conceive a combination of circumstances to warrant cancellation of debts. We have already waived large parts of the debts in settlements.”