Dagger in Dalliance,

Waikato Times, Volume 113, Issue 18927, 22 April 1933, Page 11 (Supplement)

Dagger in Dalliance,

The ordinary American citizen aslcs himself, not without reason, why he srtould make concessions to a debtor who arms himself to the teeth without regard to cost. If the only use the continent of Europe makes of its reviving commerce is to prepare for the eventuality of war, the'American is inclined to say that he is not much concerned to help to set the continent upon its legs again. There are some who say, ‘Debt revision by all means, but only in exchange for disarmament.’ How deeply felt this opinion may be we have no> means of judging. In Britain, where the current of opinion in favour of disarmament runs strongly, and Great Reductions Have Already Been Made in the naval and military establishments of the country, any pressure which America may he able to exercise in the direction of a general reduction of armaments by agreement will be cordially welcomed. The United States has it in its power to make a most decisive contribution to the peace of the world on the lines indicated by Mr Hoover’s recent message to Congress. It can pass legislation conferring upon the ■President authority on his discretion tto limit or to forbid the shipment of arms for military purposes. It might even go further and declare that it would neither permit the shipment of arms nor supply financial assistance to any nation violating the Kellogg Pact. “When we consider from how much trouble the world would have been relieved if the Treaty of St. Germain qf 19‘iO, forbidding the exportation of arms and munitions of war to the uncivilised and backward parts of the world, had been ratified by Congress, we can measure the extent of the contribution which it is in the power of the United States to make to the advancement of Peace. It is, however, fair to point nut that the continental problem is one of great delicacy. At the bottom of it lies not so much International Evil as International Fear. Financial inducements do not conjure away this terrible emotion. The fear of hunger which now assails so many deserving citizens of the United States is not more real than the nightmare of Invasion which still haunts the peasantry of Eastern France. It is always to be remembered that at the heart of the armament, problem of continental Europe is the psychology of a people twice invaded within living memory. It would, then, be a mistake to make of disarmament a sine qua non of any drastic revision of the war debts. Armaments are the symptom of a disease to which material misery makes a definite contribution. With increased prosperity the nerves uf Europe will recover and the obsession of Impending wav lose much of its present violence. it. is, then, rather in the economic than in the political Held that America lias it in. ils power at Lite present juncture to afford the Greatest Service to Humanity. Lei her use her great economic position to press for a reduction of the high tariffs which are Ihrotlling European trade and ■herself by I lie offer of a liberal larilf revision, give' an example which other nations may follow. There is no economist of repute In the wiirlil who does nol agree that llm prime ciiiise i f our presold economic discontent j s |h,. existence of the high larilf walls which now divide slate from stole. It is n ,,p ~r course, suggested dial Ihese should ho razed lo Ihe ground al one sin kc. What is needed is a considered plan of reduction

Leaving Things as They Are ,

(Rt. Hon. H. A. L. Fisher.)

sufficiently liberal to revive’ International trading and to enable European debt payments to America, if still required, to ba made without resort to the patent absurdity ■of consigning fresh, remittances of gold to the Sterile Hoards of the Federal Reserve Banks* The idea of a self-sufficient United States of America possesses attractions so natural that we cannot toe surprised if it is widely entertained, but a country cannot toe selfsufficient and at the same time expect td receive vast payments over a long period >ot years from foreign debtors. If it is to toe self-sufficient, it must write off its foreign claims. If it insists upon its foreign claims, it must make arrangements whereby these claims can be mei. The gateway must be open for the reception of foreign goods or foreign services. If it is not found convenient so to open It, then the stream of foreign payments must dry up 'altogether. It would be an interesting question for academic speculation which of the following two alternative policies would do most to restore the economic prosperity of the world, namely, complete cancellation of the war debts coupled with a maintenance of existing tariffs, or a downward revision of the war debts, taking into account the fall of prices since 1923, the British ‘flight from geld,’ the contraction of trade, and the loss of reparations receipts, coupled by a general Reduction In the Height of Tariff Walls. That immense benefits would accrue under either policy cannot be doubted by any thinker who lias given attention to economic affairs. Cancellation would have the most immediate, flic most spectacular effect; hut it is likely that Hie otiier policy would prove to: be of more enduring value, a policy of freer trade and of debts scaled down in a proportion comparable to the reductions agreed to at Lausanne. “With these and other allied topics American public opinion will be gravely concerned during the coming months. An Englishman may be permitted to hope that •the administration of the new President will, after a scientific and dispassionate examination qf the issues involved, rid the world once and for all of this chronic source of economic disorder and international illwill. Meanwhile, ihe World Economic Conference, upon which issues of such vast, mag- j nitude depend, is to meet at an early date. Will it he adequately prepared for its task? Will it be equipped not only with the necessary facts and figures, but also with the no less essential breadth and comprehensive- : ness qf view? If the American administration prefers tc discuss war debts as a sep- ' arate issue, and to treat with each debtor separately upon the merits of its particular case, will it, nevertheless, bear in mind that the question of debts is intimately bound up with the question of tariffs, shipping subsidies, and trade restrictions? Sooner or later •specific debt discussions must impinge upon the field covered by the World Economic Conference, and it may lie that, the only result of the Initial debt discussions will he to define roughly the extent to ! which llie debt problem is correlated with the oilier major problems of tho world. A Temporary and Flexible Debt Settlement framed on the understanding that it is open to revision In the hgnt or subsequent experience would he a great ileal better than leaving things n.s they arc. Tf it lie a settlement based upon an intelligent appreciation of all the factors which really matter, it, wilt he, however imperfect, a substantial contribution Lo uur common economic convalescence -