U.S. DEBT

Hokitika Guardian, 15 April 1932, Page 5

U.S. DEBT

AL SMITH’S PLAN CREATES A SENSATION. (United Press Association—By Electric Telegraph.— Copying*'-.j ’ WASHINGTON, April 13. Air AD Smith (ex-Govc ruor of New York) addressing a group of distinguished Democratic Party Loaders at the annual Jeffouson Day dinner, proposed to modify tile debt cancellation scheme. Air Smith said: “Let us say to the nations- of Europe who owe us money: We will forget about it for twenty years; and not only will we do that, but we will write off as paid, each year, twenty-live per cent? of the gross value of the' American products which they buy from us! This is, in effect if any nation purchases one hundred million dollars’ worth of our cotton, we will forget about twenty million dollars of its indebtedness, and the (same also for wheat, fruit, tobacco, or any of our manufactured products.” Air Smith, continuing, pictured the United States a-s “clamouring for the payment of debts which, we know, cannot he paid,” ‘ The Party loaders enthusiastically applauded the proposal of Mr Smith.

PLAN AVOULD RESTART COMMERCE.

NEAV YORK, April 13

Ex-Governor A 1 Smith, in hi® speech to the leaders of the Democratic Party, said that their present method of demanding repayment “is losing for the farmers, the manufacturers ami the working men of the United States more billions of dollars than the whole European debt itsedf.” He continued : “This plan will scare from the ports of the United States a Hood of American-made good® into the homes and the factories of our neighbours' across the sea; and we will, in turn, make concessions to them on the debts which we know they are unable to pay. That will remove the menace to business that exists throughout the world, which indeed iis the greatest curse of the present uncertainty.

GOVERNMENT HOSTILITY

NEAV YORK, April 14

The “New A’ork Times’s” AVasfniigton correspondent states: “Ex-Gover-nor Smith startled the diners at the Democratic Party Leaders’ dinner. His plan has met with intense interest, but there was a minimum of open discussion. This was due to its bluntnos.?, and to the fact that the Democratic political group seemed to feel that what Mr Smith had evidently given much thought to, was not a matter for quick opinion.” The “'rimes’ correspondent adds: “Ex-Governor Smith’s plan, however, hal? met with hostile comment from the Government’s circles. Member,? of the United States Senate, for the most part, have' refused to talk about the proposal. Several of them informally called it an impracticable plan, but they said that they might discuss it on the floor of the House.

“The issue is somewhat confused owing to tiie* poitical situation, there being distention as between Smith and the Roosevelt, factions*' in the Democratic Party, with the possibility of an open break between them. How far this may overshadow the problems of ■statesmanship that is involved in Mr Smith's proposal remains to be -seen,"