MUST BE PAID

Poverty Bay Herald, Volume LIX, Issue 17945, 24 November 1932, Page 7

MUST BE PAID

ALLIED WAR DEBTS U.S. LEADERS’ DECISION COMMISSION TO INVESTIGATE (Elec. Tel. Copyright—United Press Assn.) (Received Nov. 24, 11 a.m.) WASHINGTON, Nov, 23. In a lengthy formal statement following tho conference with Congressional leaders of both the Republican and Democratic Parties, Mr. Hoover declared that ‘‘as to the suspension of war debt instalments due on December 15, no facts have been presented by the debtor Governments which would justify such a postponement.” At the same time, the President declared that a United States commission should be created to receive suggestions on the war debt problems, “and to report to Congress such recommendations as it deems advisable.” Mr. Hoover declared himself as formally opposed to the suspension of the December payments and recommended that the United States Congress should create an “agency to exchange views” with tho debtor nations upon international financial obligations.

“I have stated on many occasions my opposition to cancellation,” the President said. “Furthermore, 1 don't feel that the American people .should be called upon to make further sacrifices. I 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 labor. There are other possible compensations in the economic relations which might be developed on a study which would contribute to the recovery of prices and trade. Such compensations could he made mutually advantageous. These tilings might serve to overcome the difficulties of exchange in some countries, and meet the question of the inability of some of them, otherwise, to pay. ’ NEED FOR GOODWILL

“It is unthinkable that within the community of nations and the maintenance of international goodwill, our people should refuse to consider the. request of a friendly people to discuss an important question in which they and we both have a vital interest, irrespective of what conclusions might arise from such a discussion.”

The Speaker, Mr. Garner, said at a press conference on Wednesday, that he thought the Congressmen who attended the debt conference with Mr. Hoover “convinced him that Congress at the, present time would decline to create an agency to discuss debts with foreign powers.” Mr. Garner said : “There are three questions involved in the whole problem. Shall we cancel the debt? Shall we reduce the obligations? Shall we have a conversation about them. Mr. Hoover is opposed to cancellation) and is opposed to a reduction, so what is the use to bold conversations?” A two-hour conference between Mr. Hoover and Mr. Roosevelt, assisted by tbeir advisers, at White House yesterday, resulted in the issuance of a brief non-committal statement, merely setting nit that debt postponement lias been discussed and ‘ it was felt that progress had been made.”

Further information regarding the conference is withheld, although it is understood that Mr. Roosevelt indicated that he would not attempt to dictate to members of bis party what policy should be followed. He will maintain his previously expressed attitude that the immediate responsibility rests with Mr. Hoover and the present Congress. The rejection of European pleas for an extension of the war debt moratorium and no immediate revision until after March 4 is indicated as the probable course of the United States Government.

Mr. Roosevelt made no commitments at the conference. It was ascertained from a source close to Mr. Roosevelt that be barely participated in the actual discussion, most of the talking being done bv Mr. Hoover, and the Secretary, Mr. Mills. Mr. Roosevelt, took up the position that the whole matter is up to the present chief executive.

MB. ROOSEVELT \S ATTITUDE The general subjects of war debts, farm relief, the possibilities of a special session, and Government economy, were discussed subsequently by the Presi-dent-elect, Mr. Roosevelt, and a group of Democratic leaders. No decisions were reached, but Mr. Roosevelt informed the conferees that Mr. Hoover and Mr. Mills told him that Britain would pay her £IB,OCO,OCO, due in December, but unless the United States Government made some gesture towards considering the debts, Britain would not pay any more. Mr. Roosevelt is also understood to have said that Mr. Hoover told him that if some gesture toward discussing debts with foreign debtors were not made, a grave situation would ensue. Mr. Roosevelt is desirous of the enactment of a farm relief programme during the. coming session, a sharp slash at Government expenditure, and the enactment of the beer legislation in order to avert a special session early next year. The New York Times Washington correspondent learned that Mr. TToovci will not recommend to Congress the suspension of debt payments, but will nig* the recreation of the War Debts Funding Commission, with a view to a possible revision. In the afternoon conference. Mr. Hoover and Mr. Roosevelt agreed amiinst granting postponements. Mr. Roosevelt declined to support or to oppose the Funding Commission. Democratic observers interpreted tins as an indication that Mr. Roosevelt proposes to handle the debt situation as part ot the general world economic programme lie is contemplating. .. The New York Evening Post said to-dny that according to _ persistent reports'in (be financial district, New 3ork banking interests, beaded by J. I • Moreau' and Company, have assured private London bankers that substantial credit will be advanced to support sterling it it is needed ns a result oM.be. laments hv the British Treasury of the .UH.tw - OfO of war do-bis duo t<> tho * nit>ec * States <oi December 15.

CHANCE OF REVISION

LORD READING’S OPINION

LONDON, Nov. 23. Lord Reading, who has just returned from a visit to the United States, addressed the. English Speaking Union. He said that he was confident from what he had seen, read and heard in the United States that the feeling is that Britain had had a hard deal in regard to debt settlements. Ho believed that the Americans were quite ready to revise the settlement.