DEBT SETTLEMENT

Hokitika Guardian, 21 March 1932, Page 6

DEBT SETTLEMENT

NO REDUCTION

U.S. CONGRESS DELIBERATE.

(United Press Association—By Electric Telegraph.—Copyright.)

WASHINGTON, March 17

A statement asserting that there ns no foundation for the suggestion that the U.S.A. administration intended to re-open negotiations as to debt settlement was made by fhe State Department on Thursday. This followed a Democratic Party attack in the Senate against the revision of the British War Debt, which brought a denial from Senator Reed, on behalf of President Hoover, that the subject had even been under consideration. The question had never been discussed with the new Ambassador, Mr Mellon, who is about to sail for London Senator Reed said the British debts to America should not be reduced or forgiven, because America had already been generous, and she should not be asked to go any further. Congress had indeed plainly said, and it had been practically unanimously agreed by both Houses of Congress that the burden of war debts must rest where it properly belongs—on tbe people who got the money. Taking part in the discussion on the subject of the revision or cancellation of war debts in the Senate, and speaking with the authority of one formerly connected with the Democratic administration of President Wilson, which arranged some of the loans, Senator Glass declared he could see circumstances arising, if they had not already arisen, which would make it imperative—in the interests of the United 'States, to revise the debts.

A very practical question would sooner or later be involved, as to whether it would be an advantage to the United States to readjust European indebtedness, or whether they should insist upon their pound of flesh. If such an issue should arise, what were they going to do about it? If the debtor nations could not pay, were they going to war to make them pay? Senator Gears, who was Secretary to the Treasury, when some of the war loans were made, sharply disagreed with both the Democratic, and the Republican speakers. He suggested that it should very soon 'become an advantage to the United States to modify and even to cancel the debts. He asked: “Suppose the European nations tell us in plain terms that they are unable to pay, are you going to accept their statement or are you going to war?” I am convinced President Hoover sees the circumstances and that Senator Reed does not accurately represent the views of the President. Obviously, we are not going to war, hut I can’t conceive any combination of circumstances to warrant the cancellation of the debts. We have already waived large parts of the debts in the settlements.”