The Hokitika Guardian WEDNESDAY, OCT. 11th, 1922. PAYING OFF ALLIED DEBTS.

Hokitika Guardian, 11 October 1922, Page 2

The Hokitika Guardian WEDNESDAY, OCT. 11th, 1922. PAYING OFF ALLIED DEBTS.

Tub question of Allied debts in relation to the United States Ims been advanced a stage by the address of the Hon. Reginald McKenna, to the Bankers’ Convention in America where

ho expressed from his own viewpoint the British attitude of the e-ise. The British proposals were summed up in what is known as the Balfour Note, a communication to the United States in which it was suggested that the portion of the debt owing by Britain on account of Allies who were unable to pay. might he written off, in which case Britain would in turn foiego the debt due to tier by the Allies. Jins suggestion did not have a tavoraule reception from the officials of Washington, although it was net sprung suddenly but had been foiecasted iti vaiions ways. It is due to the States to say that in that country there is considerable influential opinion in America in favour of the scheme*) hut t! 0 (Joveinnient will have none ol it. Yet President Harding admits that at suite st ige 1 .ter, something must he done, for the debts from the European Allies, outside of Britain, are not deemed to he redeemable. Mr McKenna m liis address above referred to, summed up the financial position very accurately when he said: —‘‘England is the only nation able to pay the Baited States the inteiest and sinking fund on her debt. No other nation is able to meet more than a small part of its liabilities The definite postponement of any payments is desirable in the interests of all the parties. The actual amount that they ultimately would he able to pay should he ascertained by an inquiry regarding their exportable surplus at a full and frank conference between the creditors and debtors." England is paying her debt now and a substantial amount in gold is to he sent to the United States this month. In a clear and definite statement to the lenkcrs assembled Mr McKenna made the following spirited declaration: “England

mis me anuuy to pay, ana i can unhesitatingly assert her determination to honour her bond in full, T believe that I am justified in asking you to treat the British debt to the United States as certain to bo provided for.” Tlio credit of tiho 'Empire is of course bound up in this great international transaction, and though the cost is great, and the obligations were incurred largely for the benefit of others—in the gains of which the United States participated it is splendid to

think that Great Britain is again doing the right tilling in the right way.