WAR DEBTS.

Hokitika Guardian, 26 March 1926, Page 2

WAR DEBTS.

BRITAIN CARRIES BURDEN. PROSPEROUS ITALY AND FRANCE [Australia & N.Z. Cable Association.] LONDON, March 25. In the House of Commons Mr Phlilip Snowden said that France and Italy were commercially prosperous. Their severe competition against British .goods was, he said, being subsidised out of the British taxpayers’ pockets. It was generally agreed at the time that America’s loans to the Continental Allies were a gift, as a sort of compensation for America’s late arrival on tho scene of battle. If the time came for really practical negotiations upon Russia’s debt, he would advocate nith Russia, as with France and Italy, justice to this country before magnanimity- to another.

Mr Churchill said that he did not find himself in fundamental disagreement with Mr Snowden on any matter of serious principle. He agreed that the debts should not he treated each as an isolated one, hut as a wuolc. Mr Churchill mentioned that the successive British Chancellors would have to pay to-America £IOO,OOO every day for more than three generations. Russia. he said, had repudiated both her civil and her war debts, hut that, ho said, was not the last word from Russia. Tilings were changing. Tho Soviet rulers were now beginning to see the importance of world credit. The chief difference of opinion regarding a French debt settlement was Britain’s insistence that the payment of £12,500,000 every year liv Franco, should he levied solely upon the credit of France, and should lie contingent on the reparations, she could not bo expected to continue such payments. That difference remained. It was a difficult obstacle, hut he was hopeful that the discussion would he resumed early. If matters in future worked out oil the basis of the Balfour Note, Britain would receive £33,500,000 yearly. Thus there would bo a gap of £4.500,000 short of what Britain was paying America. Perhaps, he said. Russia sonic day would ho anxious to fill that gap. At any rale, there would he a place for her. It was a remarkable fact, said Air Churchill, that America at present was receiving under the European arrange-

ments, a sum aproximately equal to the amount of Germany’s reparations, the'hulk of which reparations went to

France, while Britain was paying America largely out of her own resources. Eventually the United States would lie receiving directly and indirectly at least sixty per cent of the total reparations payable by Germany. These would march in an unbroken stream across tlie Atlantic to that wealthy and prosperous country. Ho believed that these facts would not pass out of the minds of any responsible person in either the United States or in Europe. On tlie second reading of the Consolidated Eund Bill, Mr Philip Snowden (cx-Chnncollor) drew attention to the outstanding intcr-Allied debts. The payments of these, he said, would relieve the Chancellor of all Ins embarrassment. There was now owing to Britain £2.100,000.000. This total included eight hundred million from

Russia. If they could fund theso claims on the same terms as Britain’s American debt was funded there would he received eighty-four millions, ns Compared with, thirty-eight millions that Britain was paying tlie United States, thus leaving a balance equal to eleven pence in the pound in the income tax.

Turning to France, Mr Snowden vigorously thumped his despatch box when he declared that France’s financial record, particularly for the last seven years, was one' of the most discreditable in tho history of national finance. France, lie said, had never attempted to lax her people in orejer

to meet her obligations. She could well afford to pay in full. THE AAIERICAN VIEW. NEW YORK? Ala l-th 24. “ America’s war debt settlements with tne. European nations have been Hie most favourable that are obtainable short of using force,” the Secretary of the Treasury, Air Afellon, declared in an address at the Union League Club. He touched oil the moral obligation to assist other peoples to dear away the breakage of war. “ AVe do, and we will carry out this duty,” he said. The U.S.A. Administration believed in help, and not in charity, and its financial policies towards Europe were hacked, not by, sentiment, but hv sense.

Mr Mellon’s address was prepared prior to the remarks by Air Churchill the British Chancellor, on the war debts, in the House on AA'edncsday.

Air Alellou said: If Europe is to be re-established on a sound basis, Europe must balance its budget. Its war debts must be funded, and the American investor must intelligently and profitably invest bis surplus stock abroad.

Referring to the criticism that tho debt settlements are too lenient. Air ATollon said he preferred solvent customers with the prospects of profitable business in the future, rather than to force his customers into bankruptcy.