WAR DEBT PROBLEM

Poverty Bay Herald, Volume LIX, Issue 17945, 24 November 1932, Page 8

WAR DEBT PROBLEM

FOUR NOTABLE SPEECHES BRITISH CASE STATED ‘‘ AN INTOLERABLE PROSPECT ’ ’ (British Official Wireless.) Rcc. 2 p.m. RUGBY, Nov. 23. Reference to the war debts situation was made by Lord Reading, who has just returned from, the United States, in a speech at the English Speaking Union. He said Britain’s proposal for it postponement of the American debt payment on December 15 was as important for America as for Britain. When Du* agreement was made no one foresaw that 1.1 years from the Armistice ave would he in the present position. Under the Anglo-American debt, agreement, Britain had paid more than any other country. She forwent the greater portions of the debts due to her ■from other countries, claiming only that she should receive from them sufficient to enable payment to he made to the United States. The debt, could only lie paid by gold, or by goods and services. Gold was scarce, stive in localities where it was quietly and safely accumulated in a hole. If 'payment could not be made in gold, the problem arose of payment by goods and services, and there they wore met with manifold difficulties. If they took the value of goods and commodities at the time the settlement was made, it look at least twice the amount of goods today to pay the same amount of money. Therefore, the burden was at least twice ,as great to-dav as it was then. NO REPARATIONS When the debt was fixed at a certain sum it was believed that Britain would lie receiving reparations and be paying America what she received. There was msw no question of getting reparations. He asked America to remember that Britain was receiving no payments at all. An important statement on the British request to the United States for a provisional suspension of war debt payments pending a discussion, was made by Mr Neville Chamberlain. He said there was no doubt that a similar suspension of reparation payments which had been agreed upon by the delegates of creditor Governments at Lausanne had had an immediate effect, steadying public opinions in all financial centres of Europe, and that it had assisted to create conditions favorable for the final agreement reached there. “Since then the confidence born of that settlement, and the knowledge that no further transfer in respect to reparations (would be required in the near future, has continued to increase, and it seems to us important in the interests, not only of this country, but of the world generally, that it should not be disturbed at the beginning of the discussion which wo hope may prove advantageous to both parties engaged in it,” he said. “Wo have not vet received any reply from America, but: I have no doubt that in replying to our proposal the American Government will boar in mind the considerations I have mentioned.” ■Mr Winston Churchill, in his first speech in the House of Commons since his recent illness, dealt with the war debt question. Tie deeply regretted that the question had been largely removed from the high circles of American statesmen who understood the world position, and was, to a large extent, in the hands of obdurate assemblies. newly-elected, whose members had given specific pledges to their constituents. MR, AMBRY’S FLAN Without attempting to anticipate the British Government’s decision in the face of a torturing problem, he believed that all wore agreed that “if we alone among all the combatants of the 'Great War, victors of vanquished, are to bn condemned, without receiving anything from our debtors, to pay for nearly two generations a vast overseas indemnity as punishment for the exertions we made in the war, and as the penalty for good faith afterwards, that would be a situation which, indeed, would be intolerable.” Mr. L. S. Amery said it was not bo yond our capacity to meet our obligations to the United States if we had the courage to take the necessary unpleasant steps. Wo were free both of free trade arid Die gold standard. We could pav three years payments to the United States in the shape of £1€0,000,000 in gold, which was only kept in the Bank of England as a tribute to an old superstition, and then give notice to terminate the Anglo-American commercial treaty in order a year hence to impose special, tariffs on United States goods, payable in gold or dollars, or listen to counter proposals.