A TRUE PROPHECY

Poverty Bay Herald, Volume LIX, Issue 17953, 3 December 1932, Page 7

A TRUE PROPHECY

THE BRITISH DEBT NOTE WARNING TO AMERICA PROFOUND IMPRESSION MADE BIT LEADERS DEMAND PAYMENT (Klee. Tel. Copyright—United Press Assn.) (Received December 3, noon.) WASHINGTON, Dec. 1. Probably as profound an impression as has ever been made by a Slate document, has been made upon the American people by tbe British note. Couched in simple language, and without complications of thought, if yet contains remarkable stirring phrases, which are reflected in streamer headlines throughout the press of the nation. “Like the shells in war they were largely spent on destruction”; “Those loans were'blown to pieces; they have produced nothing to repay them”; and “In all directions there are signs of paralysis of trade and threats of bankruptcy and financial collapse.” These sentences from the note are items “in the tragic bookkeeping,” which the American people hitherto have never wholly' envisaged. ' Mr. Hoover ‘and 1 hi.s' chief councillors indicated immediately after reading the document in the words of at least one newspaper correspondent, “that it is a faithful exposition of tho effect of tho war debt burden on the world and a true prophecy of what will follow Congressional obduracy.”

MAY NOT REPLY “It may not be necessary to reply,” Mr Stimson told newspapermen over his shoulders as he left White House. While he would not elaborate, Mr Stimson's statement is understood to mean that the Government feels that its position was clearly stated in the replies to the original requests, and that the latest communications present no new proposals requiring an answer. The chairman of the Senate Foreign Relations- Committee, Senator Borah, said the war debts owed to the United States wore, only one cause of the world’s economic troubles. It was unfair to ask the American taxpayers to contribute their part to the removal of these causes and leave behind causes which will make their contribution wholly ineffective.

Simultaneously with the publication of the note is the publication of an article written by Mr. Roosevelt for a popular magazine of the widest circulation, and his most important pronouncement of public policy since his election. Entitled “Your New National Leadership,” the article says: “The debts owed to tho United States by foreign Governments must be paid. It is sound common sense to assist a debtor in every way, but there is neither practicality nor honor in cancellation. The stabilisation of world finance can best be achieved by a clear understanding of our just obligations. The policy of unduly favoring foreign private loans lias resulted in more great sums being owed us and has failed to achieve any real international unity, economic or otherwise, and has confirmed foreign hopes for the repudiation of debts.

CONGRESS NOT IMPRESSED “The new leadership will deal fairly, honestly and sanely with this situation. It will remember, however, that as society is now organised, we are divided into nations, and it i 3 the duty of our national administration to consider first the welfare of its own people. I feel strongly that the welfare of the world depends just as much upon ourselves as it does upon others, but there is only one view to be taken of these great money obligations between nations. These sums represent the national labor of a great mass of individuals.” Great Britain’s renewed request for a further moratorium and her forecast of economic and political consequences if her petition is denied, apparently made little impression on Congress, which has the final say. Republican and Democrat leaders alike clung to their previous positions against the deferment of the December instalments.

Six Senators and four members of the House of Representatives, each speaking for large groups in their respective Congressional bodies, commented adversely to-night.

Senator Robinson, the Democratic leader, who was just back from a conference with the President-elect, Mr. Roosevelt, at Warm Springs, Georgia, asserted that the Democrats were generally opposed to the postponement of this month’s payments, and a definite policy would lie formulated when Mr. Hoover’s recommendations were received. Senator Robinson added : “I do not understand it. to be tho purpose of my associates to defer the payments due on December

Senator Byrnes, another Democrat, commented : “I do not believe that any statement as to financial difficulties abroad will alter in tho slightest degree the fixed opinion of tho House and the Senate. The Senate will sympathise with the troubles of foreign nations, but will also sympathise with the plight of its own people, and will not transfer this additional burden to them.” MIND MADE UP

Senator Watson, the Republican leader, said : “I do not think there is any chance for the postponement, cancellation, reduction, revision or orasion of the December payments, or for the revival of the Debt Funding Commission.”

Mr. Rainey said : “The mind of the House is made up. It will not agree to any postponement.” Mr Snell said : “If Republicans controlled the House, there might bo an arrangement to talk to debtors, but it is up to the Democrats.” Senator Johnson said : “I persist in my opinion that Britain should pay." Senator Shipstead said : “We must in sist. on payment.” Tho vice-President-elcct, Mr. Garner, said: “There is not any chance of a postponement of the debt payment.”

“I. said to Mr Hoover when I was down at White House a week or so ago that the sooner European nations realised that tiie United States expects to be paid the better off the whole world will be,” Mr Garner said. “I still think so. Debtor nations may continue to talk about it, all they please, but Congress will not do anything about it. We have a right over here to do what we think best, just as they have. ’ ’

Others on Capitol Hill also expressed Opposition to acceding to Britain, and Franco.

Senator M-Kellar. a Democrat, said that his position of opposition to cancellation or postponement was unchanged.

Mr. Collier, chairman of the House Wavs and Means Committee, remarked: “f have said, and I repeat, that I do not favor the extension of the moratorium. Any suspension of the payments duo to us on December 15 would only make it difficult to collect them when tho time comes for subsequent pavment.” Mr. Collier added: "My attitude is unchanged. For some time I have thought the best thing is to lot the matter come to a head,”