WAR DEBTS

Hokitika Guardian, 15 January 1932, Page 5

WAR DEBTS

WHAT IS GERMANY’S POSITION? THE QUESTION OF PAYMENT. [United Press Association—By Eleotri® Telegraph.—Copyright.) LONDON, January 13. . Sir Walter Layton, speaking at the Eighty Club, said that the war debts, despite the gold situation, were not exclusively responsible for the present financial crisis. Tins crisis, he said, did not start in Geiniunv. The debt situation was the main factor in converting a great and recurrent depression into something threatening the entire economic system. We could not rebuild if the present situation were repeated, A provisional settlement was useless. So was a moratorium. A two years’ moratorium was worse than a one year moratorium, simply because it was longer.

If all the debts, be said, were wiped out, Germany would have only live hundred millions of an internal debt, or a debt of eight pounds sterling per head of her population, whereas France would have an internal debt of two thousand three hundred millions, which would bo equal to £56 per head. Britain would have a debt of £6.600 TOO.000, or £l5O per capita which the United States would have an internal debt oi £3,300,000,000, or £27 per capita. Sir Walter Layton said that Germany could dearly puy something. A plan could be devised which would not he greatly harmful, There should lie an agreement now, enabling an immediato reconstruction, It would bo highly pirnble to wipe opt the whole 'tiling, thereby removing a lingering source of irritation and ft senee of war psychology. If it were done by agreement, it would pay a thousandfold. France should take the lead. There could 1 he no economic reconstruction without a Franco-German agreement, to which the consent of the Hitlerites would be necessary. If everybody tried to balance their trade by stopping their imports, they would succeed for everything would be balanced at zero. SUGGESTION FOR AMERICA. TO WRITE OFF WAR DEBTS. MILAN, January 14. Folio-wing on its recent article, to which attention has been directed throughout the world, the newspaper “II Popolo d’ltalia” ' prints an address to America, saying that America will not wish to be compared to Shylock demanding his pound of flesh from his debtor, and the paper argues that it is to their own interest that America, should make a gesture of renunciation. This paper is supposed to be in close touch with Signor Mussolini.