The Timaru Herald. SATURDAY, JANUARY 19, 1924. IS REPUDIATION INEVITABLE?

Timaru Herald, Volume XCVIII, Issue 18084, 19 January 1924, Page 8

The Timaru Herald. SATURDAY, JANUARY 19, 1924. IS REPUDIATION INEVITABLE?

Since influential members 01 ike United States Senate entertain little flop© that foreign war debts excepting Rritain’s indebtedness, will ever be paid, it would appear that the time is ripe lor a general review of the whole question ot reparations and war indebtedness. It is clear that Britain’s war debt to America is looked upon as “settled.” That is, the British people, being jealous of their international credit have concluded a satisfactory arrangement to pay during' the next sixty years the colossal sum of 4,600,000,000 dollars. It is only fair to say that with many Americans the adage still holds: “Nothing is settled until it is settled right.” The only right “settlements” of war indebtedness is to cross them off the international ledger and forget them. Although Britain would be a loser by such a settlement, still in the interests of humanity, British statesmen offered to make this sacrifice. In the course of a discussion in the United S tales Senate, it was alleged that while France was unwilling to settle her debts she was lending large sums to European Governments. It was confessed that the United States faces almost general repudiation. On _ behalf of the French policy it might be said that France is not lending large sums to European Governments France is supplying certain European countries with manufactured goods including war material. Loans are in kind and not m cash. In interest and principal, France owes the United States 3,917,326,000 dollars (about ,£800,000,000), and Italy owes 1,973,880,000 dollars (£400,000,000), according to a report of the Debt Funding Commission. Belgium has made no formal proposals for settlement. Czechoslovakia has agreed on the amount, but no payment has been made. France has made no proposal, and Esthonia none. Hungary promises full payment. Italy has offered none. With Latvia negotiations are under way, and with Boland negotiations will soon be begun. Negotiations are proceeding* with Rumania, and J ugo-Slavia is willing to adjust her debt. The Commission has not been in touch “in any way with Armenia, Austria, Greece, Liberia, Nicaragua or the Russian States. Payment by Austria of principal and interest ol 27,664,065 dollars has been postponed by the authority of Congress for twenty years from April 6, 1922. Cuba has paid in full With Finland the amount has been agreed upon subject to ratification by Congress. The Commission effected a settlement wits Great Britain, and now holds her bonds in the aggregate for principal for 4,600,000,000 dollars (£920,000,000).. Apart from Britain the Commission reports that sixteen countries owe the United States £1,200,000,000 principal and £200,000,000 interest. These staggering obligations form,, for Europe, one of the most difficult problems in the. whole . complicated process of international reconstruction. Since the Armistice it has perplexed and embarrassed almost everyone who.has. had. any official connection with it, either debtor or creditor. Put in a. few words the war indebtedness of the Allied and Associated Powers may he expressed thus: the total volume of inter-Allied indebtedness is roundly four thousand million sovereigns! The United States Government lent £„,00U,000,non million. Britain borrowed nearly £650,000,000 fr0m America and lent double that amount to her Allies; France borrowed about £1,100,000,000 from America and Britain and lent about £375,000,000 to other Allies, Dm other Allies have been only. Except in the case of Britain, the various debtors constantly hint arid sometimes frankly say, that they do no. think they ought to b© asked b pay. “Meanwhile/ .says D Frank Bohn, an American commentator on the problem oi ** indebtedness, “the political physicians ot Europe hurry irom bedside to operating' room and Oao-ao-ain. From Genoa to Hi© Skene, from The Hogue to Lausanne, they, drag the chair which the physicum-m-cluei M refuses to occupy. WimUici oi m t certain disk»guished gunUumtu at Washington sleep the 01 the hist, the public has no means of knowing- With every new financial difficulty winch Europe has to face, this em mrassmg issue of ten billions will he thrust more and more into the ioregi'ouud. Tins matter cannot be compared to the ghost which would not be laid. It isa very solid piece of business. It stands directly in Rout of us, audit bars the way of the world to. the largest progress in international relationship. The nations of Europe, the richest with, the poorest, may he compared to the inmates of an old-time debtors prison, taking counsel as to the bos!, means of improving their conditions. We are ihc jailer,, anu our most deeply involved pnsonms happen to he our best friends, miV recent companions-m-aims. 11 the American people could ho persuaded to see the question, in this light, an immediate solution of this intricate in tenia liornil problem would come. IV e do not hrlii'V.' there is likely to l>cr deliborate repudiation. International o is ten sensitive. Deify m ■ Ii v m e: 1 1 s Is .'MU-rblo in vn-w t j,,. rrnmmiic chaos hoh 11 1, ■■■

impoverished Europe in the valley of depression. At the same time, influential opinion is firmly establishing itself in Washington and in the capitals of Europe in favour of the cancellation of war indebtedness. But White House statesmen must initiate this movement. Americans returning from Europe are beginning to report that citizens of the United States are everywhere coming to be treated coldly and as stony-hearted worshippers of the Almighty Dollar. If the American people do not change their tactics they might presently stand among the nations reduced from the Saviour of 1917 to the Shylock of 1924. Compared with the ten billions of principal—and the five hundred millions of interest added every twelve months—America’s gifts to the, needy and the suffering in all lands sink into paltry insignificance. The talk of American generosity may awaken only derisive laughter round the whole world. She can really avoid all entanglements in Europe by agreeing to the cancellation of all war indebtedness. Designated by her history and her present‘position and her enormous wealth to march in the forefront of the emancipated nations of the world, free and enlightened United States seems to be deliberately choosing to take the ignoble part of a millstone huug upon the neck of impoverished, war weary humanity.