THE AMERICAN OSTRICH.

Waikato Times, Volume 112, Issue 18807, 1 December 1932, Page 6

THE AMERICAN OSTRICH.

It appears from reports from Washington that the. Government of tne United States will not accede to the requests made by the British and other Governments for a further moratorium on inter-governmental or war debts. The Government of the United States persists in the fundamental difference of opinion which has existed between It and the British Government for ten years past concerning the Impossibility of securing world • equilibrium and at the same time keeping the huge forces of disequilibrium in operation in the shape of war debts. How much longer this difference is destined to last cannot be foreseen, but this much is clear, that the views maintained by Britain in 1922' regarding the necessity of writing off debts in order to secure world recovery have been amply demonstrated as sound, and that there can be no return to world stability until this course is pursued. For ten years past, and even longer, America has refused to recognise certain facts. The first set of facts relate to the part played by America in what was a joint enterprise* America paid very little for her share In the war. Although she was a partner of the Allies for the latter portion of the war American unpreparedness resulted In the Allies having to carry on the fight, and no settlement or readjustment of financial obligations was made in recognition of this as between America and her Allies when the war ended. Notwithstanding a big body of opinion in America and the Allied claims for a just settlement, America banished sentiment from any consideration of the war partnership. A second group of facts is to be seen In the world to-day. The existence of huge iuter-governmental debt 3 imposes a strain on the international system which has been proved to ho insupportable by the present depression. The payment of debts Incurred by Governments as between one another is a matter which would stand on a high plane were this the only aspect from which the debts could ho regarded. But when the existence of those debts Imperils the present financial system and Imposes on countless millions throughout the world both misery and privation, the claims of the world must be considered. It is a time when there should be some sacrifice for the future happiness of the world, but the United States persistently refuses to see this. The only thing that the United Stales can see Is that If she wipes off some of the war debt due to her the concession will have to he borne by ttic United States taxpayer, who will have lo repay ihe internal debts raised to finance the war. Against this, however, it has lo he remembered that other taxpayers of other countries have already had II)is burden put, upon them, and Americans are only asked lo share the same burden arising from ihe war as the British taxpayer lias already had to face through tiie debt concessions extended by Britain to her Allies, lo whom she bad re-lent money raised in America. The fact has already been experienced in America —even if its lesson is not lo he profiled by—that no country can prosper while the world is in chaos, America has suffered through the part played by the unbalancing of International machinery, and must continue to suffer until the international system works smoothly again. Thus the American taxpayer is suffering loss and millions of Americans are idle because of a vain idea of saving the American taxpayer from contributing lo a sacrifice involved in the revision of war debts. Time alone will show how long the American Government will lake to face the facts. While it, adopts the role of Ihe proverbial ostrich there is little hope for Ihe world or America.