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Hokitika Guardian, 17 January 1925, Page 2

According to some recent dispatches from Washington correspondents. Senator Borah, who is now chairman of tlie Senate Foreign Reltions Committee, definitely favours making European war debts to the United States a matter for international discussion. Senator Borah believes that a settlement of problems of security and disarmament in Europe would l>e simplified if the United States “assisted to clear the road of economic obstacles.” In this matter, however, he is as yet a a oice crying in the wilderness. Irately it was reported that he had given way to ’resident Coolidge’s objections to an

International Conference being called to discuss economic questions as well as tile limitation of armaments. Congress is not expected to favour any sucli departure from present policy in regard to war debts as Mr Borah advocates. “The whole debts,” one correspondent at Washington wrote a few weeks ago, ‘■is little discussed and. so far as the mass of the people is concerned. is little understood. The question whether it will ultimately lie found possible to collect the capital and interest upon eleven billions of industry, safeguard foreign loans, and maintain a favourable balance of trade, simply does not exist for the average American, and until it does Mr Borah will be talking to deaf ears.” At the same time it is something to be thankful for that even one prominent American politician is exhibiting, a readiness to examine the question of intcr-Allied war debts on its merits.

Tuoroii it lias evidently carried the day in Britain and seems likely to be given practical effect in the near future. the policy of restoring the ster-ling-dollnr exchange to par is not immune from criticism. In a recent article in the National Review, an interesting alternative policy was recommended by Mr J. F. Barling, who came into prominentc not long ago as ail advocate of 'Umpire Currency Notes. As against the restoration of the gold standard, which goes band in band with the restoration of the sterling-dollar exchange. Mr Darling urged that it would be more advantageous, by developing the output within the F.mpire of the materials which the United States requires and the materials which Britain now buys from the United States on the one hand, and by the postponement of the return to the gold standard on the other, to anticipate the scheduled instalments by which the American debt is to be paid. Mr Barling points out that the repayment of the C 1,000,000,000 debt will involve in all the payment of about £2,100.000,000 in gold and goods, and that there would be a great gain in hastening the repayment of the principal. (Sold, wool, and rubber are named by Air Barling, as goods which the Umpire produces and America wants, and as goods obtained by Britain from America, but which might lie produced within the F.mpire, lie instances cotton, wheat and oil. As a homely illustration of wind his policy would mean, Air Darling '-'uggests that the possessor of a geld watch falling in undeserved dilliciiltie.s would increase rather than diminish bis credit by selling the gold wateb, and buying one of gun metal. As another English writer observes, however, the case for the gold standard is that gold is. from the practical standpoint, though not from the theoretical, a hotter hasi.s for currency than paper. In addition, it counts for a good deal that Canada

is already on a gold standard, and that for all the Dominions a return to this standard would overcome serious difficulties and disadvantages by which they are at present confronted in their oversea trade. Authorities are agreed that the restoration of the gold standard is the only certain remedy for the present unsatisfactory conditions of our exelianeg with Britain.