PAYMENT OF WAR DEBTS

Waikato Times, Volume 112, Issue 18809, 3 December 1932, Page 7

PAYMENT OF WAR DEBTS

RECEPTION OF BRITAIN’S NOTE. OPPOSITION IN AMERICAN POLITICAL CIRCLES. MR H. L. STIMSON’S SIGNIFICANT STATEMENT. VICE-PRESIDENT ELECT’S EMPHATIC DECLARATION. The British Note to America on the payment of war debts has created a great impression. It is regarded in Britain as a masterly document setting forth an unanswerable case. Mr H. L. Stimson, after a protracted Cabinet meeting on Friday made the significant statement that it may not be necessary to send a reply which is interpreted to mean that the case for the United States was clearly set forth in previous communications and that there is no intention to recede from the position then set forth. Mr Garner, the Vice-President elect, has made the definite statement that the payments will have to be met.

A PROFOUND IMPRESSION.

ises the Note as virtually an appeal to the reason of the American people over the head of Congress. The New York American, although it issues a warning that a remission of debts will make France, Germany and other countries stronger commercial competitors of the United States, reflects a change in Mr Randolph Hearst's point of view by intimating that Britain’s case deserves special consideration. Impressive Statements. Among the statements and views expressed in ’the British Note which are drawing the most considerable comment here are the following:—The intimation that the United Stales will not be exempt from the disastrous consequences of a further fall in the prioes of commodities, that debts cannot be separated from reparations, that the Lausanne arrangements were made with cognisance and approval of the United States, and that the effect of the American tariff has been to restrict rather than to facilitate the Imports of manufactured goods which Britain produces. Other statements which have created interest are:—That further restrictions of British purchases of American goods would be necessary if the debt payments are resumed, that the ultimate settlement of the debt question would in no way be affected by the suspension of the December payments. Britain’s association of herself with the United States as the two creditor nations who will find it the greatest wisdom to make remissions of the debts is also creating interest as is the contention that the burden of the American taxpayer would not be so greatly increased, as would his losses and the losses of the world as a consequence of failure to revise the debt settlements. MASTERPIECE OF CLARITY.

MR HOOVER’S POSITION. MR ROOSEVELT'S OPPOSITION. United Press Assn.—Elec. Te!. Copyrlglu NEW YORK, Dec. 1. Despatches from Washington state that probably as profound an impression as ever has been made by a State paper has been made upon the people of America by the British Note. Couched in simple language, and without complications of thought, it yet contains remarkably stirring phrases which are reflected in streamer headlines throughout the press of the nation. Mr Hoover’s Tied Hands. The President, Mr Hoover, and his chief counsellors indicated immediately after -reading the document, according to at least one newspaper correspondent: “J-t Is a faithful exposition of the effect of the war debt -burden on the world and. a true prophecy of what will follow obduracy on the part of Congress.” The chief Washington correspondent of the New York Times telegraphs: “If the Hoover Administration had constitutional power or political influence Britain’s case for a postponement of her own payment would he won. However, ‘Mr Hoover and his advisers have no hope that Congress will act favourably, either on the British proposals or on any made by the President. It can be sakl that the sentiment of -the Hoover Administration to-day after reading the communications from Britain is that Mr Roosevelt, the President-elect, is welcome to run Hie world, as he wilJ And after inaugural day. “The only hope -Mr Hoover and his supporters see is in a steady campaign for the education of the masses on the abstruse subject with -the situation growing worse every -hour. While they for the present despair that Mr Roosevelt will lead and not follow Congress, they believe ilia the grim facts will force him to'take that lead much sooner even that next March. Tlie British Government has stated its economic case fairly and prophetically.” Attitude of President-Elect. Simultaneously with the publication of the British Note Is the publication of an article written -by Mr Roosevelt for a popular magazine with a very wide circulation. It is his most important pronouncement of public policy since his election and is entitled: "Your New National Leadership." The article says: “The debts owed to the United States by foreign Governments must he paid. It is sound commonsense to assist a debtor in every way, but there is neither practicality nor honour in cancellation. The stabilisation of world finance can best be achieved by a clear understanding of our just obligations. “The policy unduly favouring foreign private loans has resulted in more great sums being owed to us. It has failed to achieve any real international unity, economic or otherwise, and has confirmed foreign hopes for repudiation of the debts. The new leadership will deal fairly, honestly and sanely with this situation. It will remember, however, that as society is now organised we are divided Into nations and it is the duty of your national Administration first to consider the welfare of its own people. “I feel strongly that the welfare of the world depends just as much upon ourselves as it does upon others, but there 'is only one view to be taken on these great money obligations between nations. These sums represent the national labour of a great mass of individuals.” An Unfavourable Response. The 'Washington correspondent of the New York Times stales that such observations as were made in Congressional circles to-day reflected an unfavourable response to the British Note and a determination to insist upon no chango in the debt status. It Is recognised, however, that this attitude may be modified once the forceful arguments of Britain have had time to make themselves felt. How far the President will go in his communication to Congress on December 5 -in transmitting the British Note -may be affected by the reaction of the next few days among the members of Congress and throughout the country to the British appeal. Six senators and four members ot the House of Representatives, each speaking for large groups in their respective bodies, commented adversely on the Note this evening. Senator J. E. Watson (Indiana) Republican leader, said: “I do not think there is any 'chance of postponement, cancellation, -reduction, revision or evasion of the December payments, or of a revival of the Debt Funding Commission.” The others expressed similar sentiments, the opinion being held that non-payment would add lo the hardships of the American people. Sympathy of tho Press. American newspaper comment generally reflects (lie alin.'sl instant sympathy eiielled in non-political quarters By tiie British Note. "The New York Herald Tribune’s Washington correspondent character-

BRITISH PRESS VIEWS. SHOULD CARRY CONVICTION. United Press Assn.—Klee. To:. r.eDvrtirnt. LONDON, Dec. 2. Newspapers of all shades of political opinion approve the British Note to America as an adequate and forcible expression of Britain’s case. Editorial articles, apart from expressions of commendation, mainly traverse the Government’s faith In its arguments. The Daily Express is the only London paper which regrets that Britain is going to pay If America Insists. The Times says ; “It is hard to believe that this plain straightforward statement of facts will fall to carry conviction." The Morning Post says: “The Note is a masterpiece of force and clarity. The Daily Telegraph thinks the Note will appeal to the intelligence of the great business community of America. It deal? not merely with arguments for a suspension of payment but the broad Issue of a revision and resettlement. America's Dlffloult Position. Mr. Stanley Baldwin, speaking in Glasgow, made a short reference to the debt question. He urged the British public to recognise that America herself is in a difficult position so far as action regarding this month's payments are concerned, owing to the state of deadlock which has existed following the American election. He believed the American attitude was most friendly toward Britain, but it was a difficult moment, politically and constitutionally, for her to act. Referring to Lausanne, Mr. Baldwin said Europe recognised that It was impossible In the present world conditions to continue the payments that were being made across European exchanges in the settlement of debts and reparations contracted during the war. The force of economic circumstances had been such that the people realised that until those fetters had been removed from the necks of the nations of Europe it would he impossible to revert to that freer circulation of trade, commerce and goods and facilitate payment for these thing? between countries. What was accomplished at Lausanne must bear great weight at the World Conference and at what discussions might take place next year regarding the European debts to America. They -might feel that the whole of Europe would enter Into these discussions with full sympathy for America. Europe had achieved unity in her conception of how these problems should be met and the lines along which they must travel before anyone could see daylight again in the matter of international financial obligations. LATER.

WILL NOT CHANGE. MR GARNER’S OPINION. PAYMENT WILL BE INSISTED UPON l':,lied Press Assn.— Kioc. Tel. Copyrnrm WASHINGTON. Dec. 2. The Speaker of Hie House of Mopresenla I ives and Vice-President Elect. Mr i lamer, predicted lo newspapermen llial, dcspile the British Note Congress was not going lo change Hie situation, but. will insist on payment on the due dale,