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Hokitika Guardian, 6 September 1922, Page 2

Doubti.esk tho ultimate settlement of European affairs "ill rest in the main on the joint actions of Great Britain, and the United States. America is the principal creditor nation and holds the issue in its own keeping. Britain is the principal debtor for the reason it had to borrow for tho Allies generallv whose credit was not good on the American market. Britain took up the burden as part of her great part iii winning the war, and is shouldering tho debt manfully. Britain has to make X large payment to the United States next month, and the improvement of late In the dollar exchange is a very favourable index that the money will bo forthcoming. America lias her own domestic troubles just now, and has to look elsewhere For raw materials to entry op while the strikes within hold up the foundry's industries. Cool is being imported from England, Aiiptra-

lia and South Africa to help the United States carry on. This relief from Britain and her Dominions will be accept, able and will demonstrate yet again the close ties between the two great nations. President Harding’s admission that the United States will he prepared to participate a’ctively in the financial settlement of European affairs, just communicated over the cables, is the evident realisation of stern facts which wore so lucidly explained h.V the Earl of Balfour in his historical note off tiie fcmlssion of inter-allied war debts. British wealth despite all the drawbacks of tiie belligerent debt, is still enormous, and it is evident will again dominate, tiie world’s, finance. Although the United States bolds so much wealth, money is to-day cheaper in London than it is in .New York. In January last the position was reversed, the rates being London 5% and New York 4J%, but in July the London rates was 31% and New York 4%. These pointers nil indicate Britain's financial strength, and its ability to he something of a paramount partner in the final settlement of European affairs which are so vital to its own progress and prosperity.

The fact that Governor Cox of Ohio should be ventilating liis views on European affairs at this stage is both interesting and significant because he was the contestant with Mr Harding for the presidency of the United States. Mr Cox has been visiting Europe, and was able to speak from personal experience at a gathering in London on the European situation. He spoke in no uncertain manner, and liis remarks are sure to carry considerable weight in the United States, where with the Democratic party, lie has a very large following. He regards the settlement of the reparation questions ait essential to the financial good of the country, alij predicts if Europe Is not snved from the inevitable ecohomie collapse, the French franc will follow the German mark. He plainly attributes tho Eut-o- ---] can financial confusion to the aloofness of the American policy since the war.. This is a. silent tribute to the policy Mr Wilson would linve followed but for liis breakdown. And it looks now ns If Mr Harding will have to follow- the policy which Mr Wilson attempted to direct, and which Mr Cox now supports. There is no doubt that the appearance of America again in the European situation would he helpful to an early settlement. Mr Lloyd George made an unavailing appeal to flip United States at the time of the Genoa conference, which France went out of its way to wreck. Had America been there as tiie necessary steadying influence, the position of Europe to-day would have been very different. It would appear therefore, that Air Cox, though speaking unofficially, spoke at the London luncheon to a vast audience overseas, and what he had to say will be carried across the Atlantic and while it will be interpreted ill different wavs, oil tiie whole it means tiie sowing of much good seed,” and the promise of a good harvest when the seed duly fructifies.