OPENING THE DOOR

Poverty Bay Herald, Volume LIX, Issue 17946, 25 November 1932, Page 5

OPENING THE DOOR

WAR DEBT REVISION ROOSEVELT’S NEW ATTITUDE T> RE PARED TO NEGOTIATE (Elec. Tel. Copyright—United Press Assn.) NEW YORK, Nov. 23. “Mr. Roosevelt is cautiously pushing the door open towards debt revision. ’ ’ Tho foregoing was the most important conclusion of observers who have followed a two days' period of multifarious inter-party conferences in Washington. The conference, however, .in general, added to the confusion existing in American minds relative to the settlement of a knotty question on the basis of intelligent self-interest, if not generosiy. In a statement issued to-night the President-elect, Mr. Roosevelt, said that the debtor nations could .make the most convenient and effective contacts with the United States Government through the existing agencies of diplomatic intercourse. He continued: “With regard to the general policy'm connection with these debts I firmly believe that an individual debtor should at all times have access to the creditor, and should have an opportunity to lay facts and representations before the creditor, and that the creditor always should give courteous, sympathetic and thoughtful consideration to such facts and representations.”

Mr. Roosevelt added that this principle applied to nations as well as to individuals. Mr. Roosevelt’s statement 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 favorable impression among those seeking leniency for debtor nations. AN ANTI CLIMAX The lack of a clear-cut and definite-ly-outlined policy' on the part of Mr. Roosevelt, however, is not considered surprising. Mr. Garner touched the nerve of the matter .in a statement tonight, when he said: “One hundred and fifty new members of Congress have been elected. Who can tell what will bo in their minds?” Even as the principal conferences at Washington concluded, the Polish Government handed the State Department a Note also asking for postponement and revision. It was rather anticlimatical for Mr. Stimson was handing a reply' to France almost simultaneously, and similar replies were being drafted for other nations virtually presenting Mr. Hoover's conclusions. The President’s modification of his known opposition to the suspension of payments on December l(i, by suggesting that they might be made in foreign currencies, with transfers delayed, is generally considered as especiallv applicable to Britain. With half the world stabilised to sterling there is deep anxiety here lest forced payments by Britain at this time might depress the pound to a point of demoralisation for foreign commerce. Although. Congressional leaders at to-day's conference unanimously opposed the suspension of the payments on December 15, they .indicated that Congress, which is being convened for December 5, would probably not oppose payments in foreign currencies. BRITAIN’S FURTHER NOTE

Tho intimation from London that the British Government did not believe that the door was irrevocably closed against further Anglo-Ameri-can discussion of the advisability of the postponement of payments, has been sympathetically received in Washington. It is expected that a new British note will inform Mr. Hoover in detail the conditions nbces'sitating tho postponement, and the presentation of the facts of the question will open immediately after the old Congress re-convenes for its last session.

Senator Reed expressed the opinion that the President could conduct conversations with any debtor nations without Congressional action, but Mr, Hoover pointed out that a rider to Congressional approval of last year’s moratorium virtually tied the Executive’s hands in this direction. There is considerable comment on the apparent broadening of the President’s views on the debt question as outlined in his statement, particularly his suggestion of interlocking membership between the recreated Debt Commission and American delegations to the world economic and armament conferences.

Air. Roosevelt’s intimated opposition to the discussion of debts at the latter two conferences is held to sharply contrast with the President’s view. EUROPEAN ARMAMENTS During the past week, a nation-wide discussion on the war debts question lias brought forth observations from many well-informed quarters, which contrast interestingly with the statements in Air. Hoover’s pronouncements. Although there is no legal connection between debts and reparations, it is felt that any attempt to keep them apart is only a quibble, since the Dawes and Young plans were both drawn up with American debt payments in mind, and war debt payments have hitherto been made from reparations payments. Intimations that the United Stales has already cancelled a large portion of the debts are considered, unjustified i» the light of the fact that the total funding arrangements provide for payment over (52 years of 22,0(10,000,000 dollars principal and interest, or over twice the amount originally advanced by the United States. Suggestions or inferences that Europe’s ability to pay is demonstrated by its increased armaments expenditure, are considered open to qualification, and an examination of the United States app’opiiations for defence show they do not represent exported capital wiieu the debt payments' require, _ •nu! which foreign countries find it extremely difficult to make. U.S. PRESS OPINIONS

It is estimated that if the payments' due in tho present fiscal year are eqn,celled, it will only increase the per capita tax burden by 220 cents, compared with approximately -Ho cents per capita decline in the 1 uited States’ customs revenue during the past, two years, due to the drop in foreign trade, in no small part attributable to the war debt inequalities.

Tho Boston Herald says: “A great nation cannot properly act otherwise than as an open-minded and magnanimous creditor.” The Baltimore Sun says: “The outcome of the Hoover-Roosevelt conversations on war debts is igoro liddliug and more suffering.”

The Nc.w York Times declares: “Unless in this hour the English-speak-ing nations of the world stand together, new 7 dangers lie- ahead. We must do our part, particularly in our attitude towards a nation which has shown gallantry and fortitude with its own titanic problems, and high consideration for our own political difficulties and economic burdens.” The New York Herald-Tribune says: ‘ ‘ Americans are so accustomed to having Air. Hoover do the right and courageous thing that his admirable statements on debts will hardly occasion much surprise.” BRITAIN NOT DISMAYED HOPES NOT ABANDONED ANOTHER NOTE TO BE SENT LONDON, Nov. 24.Alr. Hoover’s statement concerning war debts is not regarded in" British Government circles as unsatisfactory, it is realised that the door is not closed to further discussion and it is understood that a further note will be prepared and despatched immediately, giving facts and figures supporting the British case. Tho position is regarded as open until this document is considered at Washington. It may be necessary that the Washington Government should consider the international effects of the transfer of £28,C00,C00 across tile Atlantic, while the British Government must study the reaction of such a transaction here, seeing tltat provision for payment was not made in the last Budget. The Times says: “It is clear and decisive that the hist word rests with Congress and the outlook is not at present favorable. If America insists oil payment on December 15 it goes almost without saying that payment will b» made. Any other course, supposing payment is humanly possible, would be contrary to British tradition, and would deal a fatal blow to the quaking edifice of international credit. If Great Britain were to repudiate her obligations, her example would be followed by every debtor country, possibly even by private debtors.”

The editorial proceeds 1.0 recount the consequences and sacrifices entailed if the payment must be made as a fleeting taxpayers of the British Empire and of America herself, besides the Lausanne settlement.

Following Mr. Hoover’s announcement excitement ran high on the foreign exchange market. Sterling was offered heavilv. falling to 324’, which compares with 3233, the'lowest ever recorded since Britain left the gold standard. The Stock Exchange opened weak, giltedgeds generally being I per cent, lower.