The Daily News TUESDAY, DECEMBER 20, 1932. RECIPROCAL GENEROSITY.

Taranaki Daily News, 20 December 1932, Page 4

The Daily News

TUESDAY, DECEMBER 20, 1932. RECIPROCAL GENEROSITY.

OFFICES; $ NEW PLYMOUTH, Currie Street. STRATFORD, Broadway. HAWERA, High Street.

On some occasions a gesture has greater value than material assistance. When New Zealand placed its men and resources behind Great Britain in 1914 no one imagined the Dominion’s action would make the difference between British victory or defeat. It did, however, make plain that membership of the British Commonwealth of Nations was something finer than a convenient form of administration or even the most satisfactory form of self-government under varying conditions which the world has ever seen. So in regard to New Zealand’s offer to resume liability for war debt payments. Great Britain offered to postpone those payments from the Dominion at a time when it was anticipated that the same accommodation would have been granted to the United Kingdom by the United States. That relief having been refused and the burden upon the taxpayers of Great Britain kept as heavy as ever, Downing Street has still offered to await the convenience of the Dominions before requiring them to resume payments. It is such generosity which strengthens the almost intangible links of Empire, and proves that Imperial co-operation is possible without in any way entrenching upon the rights of self-govern-ing States. The Government has 'decided that if to exercise this generosity towards New Zealand will add to the embarrassments of the United Kingdom it should not be taken advantage of, and has therefore offered to resume the liability, which amounts to about £1,700,000 per annum. As a gesture of appreciation of many instances of Great Britain’s assistance,. the action is one which is likely to receive general approval. It is an action that was doubtless preceded by most careful consideration, for if New Zealand’s offer is accepted it will almost assuredly call for further sacrifices from the people of the Dominion. A policy involving even greater demands upon the public is one which only the wisest foresight could justify, and the Government must be prepared to tell the public in due course . the grounds upon which its decision has rested. Some of them may be fairly easily assumed. The offer to resume liability for war debts will counteract very effectively a lot of the loose talk which has been indulged in of late about the oversea debt being the principal cause of all New Zealand’s financial ills, and that adjustment of this debt must be demanded—not suggested—before the Dominion has any hope of recovery. Only last week an ex-Minister of the Crown, intimated that the oversea debt pressed more heavily upon the primary producer than upon any other section of the community, and that action should be taken ’to relieve him of some of the burden. When an ex-Minister talks in this strain , he will have himself to blame if the financial reputation of New Zealand is injured. International credit is a delicate plant, and its robustness can be seriously affected by any suspicion of repudiation or failure to keep a given bond. It may be desirable, or even imperative, to seek a re-adjustment of the oversea debt, but it can only be done by arrangement with the creditor concerned, and to make a “demand” for readjustment would be an unhappymethod, of commencing negotiations which are bound to be difficult under the most hopeful circumstances. The offer to resume a liability the payment of which Great Britain is willing to postpone is the best indication that the talk of repudiation or demands for “adjustments” of the rights of investors in Great Britain does not truly represent the spirit of the Dominion. New Zealand is prepared to meet its liabilities though, like any other country, she would like them reduced if such can be brought about by an equitable arrangement acceptable to her creditors. Payment of the war debt by the Dominion is not likely to ease the taxpayer in Great Britain to any appreciable extent. It is a gesture to him, however, that taxpayers in the Dominion recognise' his grievous burden, and despite unprecedented difficulties in their own country they are .willing, to take up responsibilities which could be postponed if it will aid to some small degree the position in the United Kingdom. Most important of all,, perhaps, New Zealand’s offer will indicate that in Great Britain’s handling of the war debts problem she c?.a rcU upon having behind her the full co-operation of the other members pf .the Sxitjsh Com,-

monwealth of Rations. If the offer is accepted the Government will no doubt have made arrangements for the necessary finance of which the public will be advised in due course. In coming to the decision it has, the Ministry has taken the broad and long view. It is sure to meet criticism, but it seems to have acted upon the principle of “doing what you would like the other fellow to do to you, and doing it first.” Very often that is the soundest statesmanship, as it is the most felicitous action.