THE DEBT PROBLEM.

Waikato Times, Volume 110, Issue 18518, 24 December 1931, Page 6

THE DEBT PROBLEM.

The United States Senate has approved the one-year inter-Govern-mental debt moratorium, after rejecting an amendment requiring the revision of the Treaty of Versailles as part of what is termed the debt holiday. The world has received very plain warnings in the last few. weeks of the serious position which will arise early In the New Year in connection with international debts- Conferences have met of bankers and experts, but as yet no meeting of the nations has been called to consider the solution of outstanding difficulties which threaten financial catastrophe for the leading countries of the world. The activities of the Advisory Commitl.ee under the Young Plan are naturally confined to European questions. A notablo British financial authority has predicted that unless steps are taken there will be a world collapse within two months. This statement is not a scare, but is backed by serious facts and figures. The British Government takes the viewpoint that world affairs can only be straightened out by a complete overhaul of the whole subject of reparation and war debts. In these circumstances, two countries — the United States of America and France —are called upon .to join with Britain and other countries in assuming their responsibilities to the world by endeavouring to take up the debt problem and expunge debt difficulties from the world's legion of troubles once and for all. But America and France have already discussed this in advance and have given the impression that they are not anxious to lead In the adjustment of the difficulties and alleged Injustices of war and reparation debts. France is adopting an attitude of passive resistance in regard to the debt problem similar to that already witnessed these many years concerning disarmament. France makes objections and lays down conditions. As each Is overcome, another is set up. The United Stales, on the other hand, is pursuing a policy of evasion. The Hoover debt moratorium earlier in the year was not a step taken to solve the difficulties of inler - Governmental debts, but to evade the solution. it was pointed out in these columns at the time that the Hoover proposal merely postponed the debt problem and that the whole question had yet to be settled. Now President Hoover sees the impending financial catastrophe which is the result of America’s unwillingness to take up the permanent solution of the debt problem. To stave off the facing of the facts, a moratorium of 10 years is suggested. That would postpone the solution for 10 years. It is no solution. The question arises as to whether tho other countries can accept the Hoover Moratorium in lieu of a permanent settlement. How can stability or confidence be hoped for, if the only step to that end is tho postponement of a threatening storm for two or ten years? The uncertainty will always exist, unless, of course, a postponement for ID years-is another way of postponing for ever! And If the latter is meant, why not say it? The world cannot accept uncertainties and postponements at a time when it wants a definite agreement on the debt problems and a clear understanding which will serve to permit post-war reconstruction to start at last on a firm footing. The Hoover moratoruim may be a subtle move to evade the facing of the issue, but the temper of many countries is such that evasions will no longer serve. The world wants the debris of war to be oleared away so that it can get really down to the problems of peace. Is it too much to hope that we shall have peace in our time, for If we are to have real peace, we cannot have it while promoting dhe seeds of misery and discord in a rising generation which did not make war and does not want war?