The Waikato Times With which Is Incorporated The Waikato Argus. SATURDAY, DECEMBER 3, 1932. WAR DEBT PROBLEM.

Waikato Times, Volume 112, Issue 18809, 3 December 1932, Page 6

The Waikato Times With which Is Incorporated The Waikato Argus. SATURDAY, DECEMBER 3, 1932. WAR DEBT PROBLEM.

The British Note on the war debt problem has been delivered at Washington. It is a document which should make the United States authorities ponder, for it sets forth plain facts In unequivocal language, and Mr Hoover and his Ministers are brought face to face with their responsibility in a way which makes it Impossible for them to ignore It. Upon their decision, imperative in the next few days, great issues hang. The Note points out that war debts and reparations are a burden too heavy to be borne. For fourteen years the nations have been striving with the problem. The measures taken with a view to easing the situation have had a contrary effect, and added to, rather than subtracted from, the incubus. Upon Britain has fallen the greater part of the sacrifice. She finds the strain too much, and realises that, failing review, the social system of the whole world is in jeopardy. If Britain collapses—a far from Impossible denouement—she will have to drag down other European countries, and the repercussion will be felt with tragic force even in the New World. Britain is not seeking to dodge her obligations. Her signature has been affixed to the debt-funding contract and she is ready to make payment on tho due date; but she points out that whilst such payment would be embarrassing to her it is almost a foregone conclusion that it would be positively harmful to the United States and the world generally, as it would put further manacles on trade, making a revival of business and the return of prosperity impossible.

That these contentions are not mere figments of imagination is shown by the statement regarding trade conditions. The United States Government is given concrete facts showing that it is impossible to have it both ways. If it decides that it prefers debt payment to trade, the gold bars held by Britain will be shipped to Washington, and the Inanimate metal will no doubt be placed in the vaults of the Treasury, symbolic of stagnant wealth with no vitalising power. If liquified, set at liberty and allowed to flow In trade channels, It will become a stream carrying life and energy to all nations, and materially contribute to a return of more -prosperous times.

The world is at the cross-roads. It is for the United States to decree whether she will go over the precipice or essay the mountain track. We cannot think that Mr Hoover and his colleagues will direct her along the former course.

It is regrettable that the climax of the problem lias arisen at this juncture, when a change in the United States political regime is pending. Ilad Mr Hoover been returned last month for a further term of the Presidency it is possible that he would have chosen the courageous course'. Faction, however, is the bugbear of American politics, and witii the average politician the interest of party has a greater swaying power than the profit of country or the welfare of the world. This has recently been demonstrated by the fact that though the President Invited the President-elect to a conference, the latter declined to give a lead, preferring to leave the issue to Mr Hoover, who has nothing to guide him as to the Democrats’ policy, save the declaration by Mr Roosevelt when, without Hie steadying influence of responsibility, lie declared that lie and his party would insist upon payment of debts and would havo nothing lo do with cancellation. When lie assumes office Mr Roosevelt will probably have to change his viewpoint. In the meantime lie prefers to leave the matter for Mr Hoover to deal with, and ho. in view of the fad that Mr Roosevelt's policy lias been so derisively endorsed hv the country, naturally feels reluctant to follow a course which facts convince him is wise, but which a large majority of his countrymen have recently declared they do not desire to follow.