FRENCH DEBT TO U.S.A.

Hokitika Guardian, 18 January 1924, Page 3

FRENCH DEBT TO U.S.A.

AUSTRALIAN AND N.Z. CABLE ASSOCIATION SENATOR BORAH'S OPINION. WASHINGTON, January 17. The failure of the French Government to take steps to adjust the French Win Debt to the Cnited States drew P,re in the Senate fo-day from Sonnier Borah. The ID each Government is declining, not only to meet interest payment. hut even Inis made no effort to adjust the debt as a creditor acting in good faith naturally would de-ire to make,'' Senator Borah declared that while France wrs unwilling io settle, -hr was lending large -unis to European Governments, partieiilai ly Poland and Czecho-Slovakin. Describing France as “the greatest military power Europe has ever known Senator Borah said the Atnorien.ii tuxpawers were meeting the cost of France’s Army. WASHINGTON. January H>. The discussion cm the War Debts was injected into a Senate debate on tnxreduetiori. It revealed that some inI 1 lien tln I senators entertain little hope thi'i the foieign debts, excepting Britain's will ever he paid. Senator Borah, in considering, the means of reducing domestic taxation, urged the adjustment of such few foreign drills as Were. enllecliiMc. saying there was the example of the live years gone and the Freni ii Government had not only failed to | ay interest, hue had tiir.de no effort to even adjust its debt, as a fair, honourable creditor would have done. Surely, if sueli a situation existed between private creditors it: would he considered a repudiation of debt indeed. Ho said : “I believe we aie facing an almost general repmlia t!on.” Thereafter Senator Smoot, it memher of the Debt Funding Commission remarked that while no country has officially repudiated its debts, nevertheless repudiation has been clearly inn. plied in incidental interviews, an.', sialements h\- foreign officials and Governments. It is interesting to note that other Senators expressed no dissent from this 11 view.