DEBTS TO U.S.S

Hokitika Guardian, 9 February 1923, Page 2

DEBTS TO U.S.S

1> R ESI DE ST ENTH USKS

avbtrauan- and n.z. cable association. WASHINGTON, February < • President Harding addressed a joint session of the two Houses of Congicss He presented the Debt in J" ’ This he characterised as thp . clearing of the war-clouded skies ill a del a - burdened world.” The President prefaced his remarks bv‘ quoting the Debt Commission s statement on the second of lebni.u. He declared that the settlement, m effect, was a fight against war and wav expenditure, and a rigid adheion e lo that production and retrenchment which enhances stability precisely as

it disehnrm^ Mr Harding said:—“l m.te the Commission says sentiment is on a basis fair and just to hath Governments. It i< a business settlement, fully preserving Hie sincere commitment of one <front nation to validate its financial pledges, and to discharge its obligations in the highest seme of financial bonour.” The president asked for a speedy approval of the settlement. lie warned Congress against spending the inonev to be paid by Britain oifa soldier bonus, or other projecets. TT,. pointed out that the debt payments were already pledged to the repayment of the investors in American libertybonds.

The President denounced the proposals for the cancellation of war debts as “fancied hut fallacious contributions toward peace.” He expressed his gratification over the aloe-t unanimous approval by press and public ol the British settlement, declaring it meant vastly more than a mere Binding. It meant the ultimate discharge of the largest international loan ever contracted. It wa> a recommitment of the English speaking world to the validity of contract. The lailure of the British undertaking would have spread political and economic discouragement throughout the world. A general repudiation would likely have followed in its wake, but here Britain had kept faith willingly, and there was a covenant of peace no less effective than it would he if joint British and American opposition to war were agreed on. It was a new element of financial and economic stabilisation when the world was usually needing a reminder of the days of peace. It was an example of encouragement ami inspiration when the world was staggering under discouragement. and bowed with the sorrows of wars which humanity was praying may he avoided. The President declared that if a debtor nation could approach the question in such a spirit as Britain showed, the United States should meet it in the same spirit and readily approve, with a promntnesa that will convey fitting appreciation