WAR DEBT PROBLEM

Poverty Bay Herald, Volume LIX, Issue 17954, 5 December 1932, Page 5

WAR DEBT PROBLEM

AMERICAN CONSIDERATION EFFECT OF BRITISH NOTE A SYMPATHETIC RECEPTION (Elec. Tel. Copyright—United Press Assn.) (Received Dec. 5, noonJ WASHINGTON, Dec. 4. Study and discussion of the British debt note to-day appeared only to solidify Congressional opposition to any change in the existing funding agreements. The French note, published as anticipated, emphasised the contention behind Mr. Hoover’s position in suggesting that the Lausanne agreement placed a moral obligation on him to extend the moratorium principle. It described the French and world economic situation as requiring a fundamental revision of tho debts status. Admitting the powers of Congress, the note closed significantly with an appeal for a favorable decision from “the President of the United States.’.’ The Hoover Cabinet was busy throughout the day discussing the situation. -Sir Ronald Lindsay, British Ambassador, called on Mr. Stimson. There was no statement other than an intimation that neither note might be officially answered. Meantime it is persistently rumored that several senators, presumably leading Democrats, are formulating a long range programme envisaging the settling of all debts for a fixed cash amount, tentatively mentioned at £200,000.000, to be financed by an international loan, the granting to the United States of trade concessions, and a promise of substantial reductions of European armaments.

REDUCTION OF TARIFFS. Senator Cordell Hull, a Democratic tariff expert from Tennessee, has sent a proposal to Mr. Hoover that the United States take the leadership in persuading the world Powers to cut tariffs by 10 per cent., and mow down other artificial trade obstacles. If the nations accepted this programme, he said, America could reduce debt payments. It is understood that high Government officials are greatly concerned over the effect °n world trade of further currency depreciation and they are studying this angle intensively. The administration is understood to be preparing for the resumption of the war debt payment on December 15, seeking a collection method that would cause the least possible disturbance in international exchange. The general impression here is that the British and French instalments will be met. Mr. Hoover is expected to refer the subject to Congress next week with _ a renewal of the appeal for the creation of a war debt commission, but with a firm stand against postponement. It is becoming plain that the United States wants some disarmament by European powers on any programme of debt relief. Several movements linked with the remonetisation of silver developed in the United States Senate on Saturday in connection with debt payments. Mr. Somers, chairman of the House Coinage Committee, suggested that Britain be allowed to pay the December payment in silver. Senator Hayden followed up with the suggestion that all war debts be paid in silver. Senator Wheeler and others believed that the remonetisation of silver was essential for economic recovery. Senator Somers said the use of silver to pay war debts would lie tlie, key. to the solution of all future depressions. “Insistence upon British payments in gold, and the consequent further depreciation of sterling will,” he said, “harm the United States probably more than Britain.”

AMERICAN PRESS VIEWS Commenting on the British debt note, the Journal of Commerce to-day said: “No, our best customers are not engaged in making) foolish threats. They are not trying needlessly to alarm numerous exporting groups whoso sales abroad will be curtailed in proportion as the pound depreciates. They are only setting forth certain obvious facts which it is perilous for the people of the United States to ignore.’’ The Herald-Tribune says:—“The note conveys a sense of danger that not even the most suspicious citizen from Missouri could miss. Any easing of the December task that is feasible should certainly be granted, but far larger and more vital is the problem of _ a final settlement. The interest of this nation in seeing that the pound sterling is restored to its old position and that Britain, our largest customer, shares in the general return to prosperity can hardly be over-estimated. The Washington Star (Independent) says ;—“lt is plainly incumbent upon the American people to suppress their prejudices and weigh the British facts and figures not only upon their intrinsic merits, but, primarily, from the standpoint of what would be best in the long run for the United States.” The Birmingham Age-Herald (Democrat) says:—“The note is avowedly an effort to reach the mind and heart of the American public. American love for candour and capacity for catching a point must respond to such a petition-. The San Francisco ependent Republican) says:—“Whatever the President may recommend now or Mr. Roosevelt may propose later, Congress has made up its mind. Its answer is ‘No.’ American economists agree that the British analysis is correct, but no American Congressman will learn that by mere economic argument. The Boston Herald (Republican) says: document which Americans who have hitherto neglected the study involved in the question of reparations, war debts, and economic implications, would do well to read in its entirety,’’