WAR DEBT PROBLEM

Poverty Bay Herald, Volume LIX, Issue 17948, 28 November 1932, Page 5

WAR DEBT PROBLEM

U.S. BUSINESS VIEWS CANCELLATION OPPOSED COMPENSATORY SUSPENSION (Elec. Tel. Copyright— United Press Assn.) NEW YORK, Nov. 20. The principal development in the war debt situation to-day was the publication of a lengthy report from the United States Chamber of Commerce, strongly opposing cancellation, and advocating a temporary postponement of payments by countries . unable to pay, and revision where advisable, conditional upon a reduction of armaments and compensatory trade advantages. Presented as a business man’s viewpoint, the report declared, “the adjustments must not throw an undiminished tax burden upon the American taxpayer.” The report then made five recommendations: (1) Postponement; (2) revision or modification; (3) “definite provision for such treatment of our trade as will assure the access of American goods on fair competitive terms,” this being interpreted as an advocy of preferential trade agreements; (4) reductions in armaments; and (5) the rejection of the cancellation proposals. The report bears as its premier signature the name of Mr. Silas Strawn, and includes Messrs. Melvin Traylor, Julius Barnes, and other distinguished signatories. SYMPATHY FOR BRITAIN.

London press reports concerning the British intention of a new Note, addresses by the principal statesmen and Mr. ,T. L. Garvin’s editorial article in the Observer, are noted with exceptional attention by interested sources at Washington. ' Mr. Garvin’s suggestions of “a human touch” in the new Note, elicited intimations even in the sources of the greatest British sympathy that “Britain must present a convincing argument why payment should he suspended and the debts reviewed if it is to modify the present hostile Congressional attitude. Such evidence as has thus far been received through official channels- is inconclusive concerning British economic conditions, although efforts have been made to determine with exactness the weight of the difficulties confronting that country.” The publication of the debt Notes to Britain, France, and Belgium by the State Department revealed that the Government’s official position to a great extent coincides with the trend in public opinion, namely, considerable sympathy and encouragement for Britain, but little or no hope is held out to Belgium or France. 'The Note to Britain mentions the seriousness of the situation upon which the request was predicated. However, it explains that nothing can bo done without Congressional action, and suggests that by current payments being made “the prospects of satisfactory approaches of the whole question would be greatly increased.” This encourages the British Government to make the presentation of her position as a special case looking toward revision. ANTAGONISM TO FRANCE. On tiro other hand, the Notes to Franco, and Belgium are regarded, at least as far as"the Hoover Administration, is concerned, as closing the door to any. suspension. :.i Jt would bo idle to attempt to conceal the fact that there is unquestioned resentment among the American people, particularly in Congress, over attacks allegedly made by French interests last year on American ffnanciul stability, with runs on the dollar, and the wholesale withdrawal of balances here. That this is in great part responsible for the apparent intransigicncc if the American attitude it would be difficult to deny.

Irrespective of widespread sympathy for British conditions, the American Congressional attitude remains still even toward her, by i cason of the so-called united front on the part of European Powers in dealing with the United States in reference to debts. It is recognised that such a united front is imperative as the result of Lausanne, nevertheless it *is pointed out that there were many warnings from the American Government against treating as groups. The State Department, incidentally, to-day notified Poland and Czechoslovakia that payments would be expected on December 15, with no extension of the moratorium, and added that Mr. Hoover was prepared to recommend a Debt Commission. J heso Notes arc in line with others.