CUT IN WAR DEBT

Taranaki Daily News, 30 January 1931, Page 7

CUT IN WAR DEBT

SUGGESTION IN AMERICA “OFFICIAL COLOUR” GIVfN REMEDY FOR DEPRESSION MUST TAKE THE INITIATIVE SOME CONDITIONS NAMED 4y Telegraph—Press Assn.—Copyright. Rec. 7 p.m. New York, Jan. 28. The advisability of a reduction of war debts owed America by 16 European nations, recently advocated by various American bankers and publicists, was given what is believed to be official colour in a r speech at Chicago to-day by the Secretary for War, Mr. P. J. Hurley. "A ref Auction conditional upon a proportionate yearly reduction of war budgets by these nations would relieve the present economic depression throughout the world apd further American trade,” he said. Mr. Hurley, who was a member of the World War Foreign' Debt Commission, added: ‘Until such time as our country fakes the initiative by some constructive international move it is questionable when the world will pull out of its economic rpt.” IHe believed that deferring payments on war debts even for two years would constitute a powerful lever for the restoration of prosperity. He stressed the point that since the sums of the debts were fixed .oh the nations’ capacity to pay a revision on this aloriO was essential now. \ “I take the liberty of suggesting a plan contemplating progress,”, continued Mr. Hurley. “I would have a reduction of war debts to a total amount of 50 per cent, accomplished by yearly reductions over a period of 30 years at the rate of 1} per cent, for the first 10 years and a 17|- per cenfi reduction Over each of the Hext' two decades. Army and navy budgets, including thofse of the; United States, would be reduced upon a mutual understanding co-ordinated with the debt reduction. J . . "Many'Americans are apprehensive that if the war debts are revised or reduced many of the governments concerned instead of : passing the advantages on to the people in the form of reduced taxation would further expand their armies and navies. It is therefore rather difficult to discuss or recommend any reduction or revision without an assurance that the economic welfare of the people in these countries would be directly benefited and they would not be placed in jeopardy of future wars.”