Untitled

Hokitika Guardian, 22 July 1924, Page 2

In regard to tile .subject of foreigi debts the case of Turkey is ill a category different from that of Russia Germany, or the South American re publics. Turkey has not actually repudiated her debt, as Russia has, am sln> has not deliberately debased hei

currency to such an extent as to wipe out her internal indebtedness, as has happened in Germany, while the default which lately appears to have taken place in interest payments is not due to a temporary inability to pay. The action is very similar to that of a fraudulent bankrupt, and to explain the position it is necessary to go hack some years. In 1881 a settlement of the Turkish debt was effected under the Decree of Altiliarron. Tli.i measure set up the Council of Administration of tho Ottoman Public Debt, and assigned certain revenues to meet l.ho interest and sinking fund. In

order to obtain this settlement. Ihiii holders surrendered £85,000,000 wot of claims oil the Turkish Treasury, a in 190!) they agreed to another i

election of £40.000,000. Jn effect, therefote;, they bought the Decree with hard cash to the amount of £125,000,000 hoping that the balance would he safe. This Council of Administration in the last forty years not only served the interests of bondholders wall, hut also brought about a groat improvement in the financial machinery of Turkey. For a long time past, however, the revenues which were ceded by the Decree of 1881 have been only partially paid over to the Council, and just lately that I sidy has been entirely deprived of them by the Turkish authorities. Turkey has thus repudiated the Decree of Mttharren, which lias boon well described as the sheet anchor of Turkish credit and the .sole safeguard for the creditors of that country.

Audukhsino the Advertising Convoi

ti on in London last week, Sir George I’aish, a financial authority of eminence at Home, is reported to have said: “The peoples of the world were demanding hotter conditions of life. There was no reason why they should net have them. There was enough natural wealth in the world to give every man a decent income.” This indication that there is plenty of wealth in the world, and plenty for all is true of course. But it must not he thought that gold or silver grows on trees, and that the peoples of the world have only to roach out their hands uml gather what they "ill! The world’s real .-wealth can he garnered only by real work. The “natural wealth in, the world" lias to he won by work, and if that gospel is preached and understood we would

icnr less of advanced socialism or pure ominuiiism. Wealth can lie won only

by the expenditure of effort, and with well directed effort it is obvious some must- he riclien than others. That being the case work in plenty is good for the folk who desire to acquire wealth. With more money earned, better conditions of living may he enjoyed—hut always there is the obliga-

tion that work is the stepping-stone to wealth. Wealth is not made necessarily at the expense of others, but at the expense of our own personal

work. Tho ar<niiro-niont of riches by that means is a joyful form of recreation. and gives pleasure as well as profit. Sir George Paish to make his address to the Convention more complete, might have adorned his remarks with the moral of how real wealth could lie acquired. Ho certainly spoke of a possible trade revival which would afford avenues for more employment, and whence the ‘‘natural wealth” ho spoke of might- be derived, Rut it

would bo well to have the complete statement of the ease, or otherwise tlio unthinking might come to believe that a simple division of money by a process of confiscation is going to afford those “better conditions of life” the speaker referred to. Such is a fallacy too widely helived, for the world’s real wealth can he won by production only. The Americans have come to realise the truth of the statement just made, and it is more acceptable in tlie United States than in the British Umpire where so many palliatives are being tried to tide over economic, difficulties both nationally and individually. But the Empire is coming to its senses, and the moral to the address above referred to, is some confirmation of that recovery.