The Guardian And Evening Star, with which is incorporated the West Coast Times MONDAY, AUGUST 1, 1932. WAR DEBT SETTLEMENT.

Hokitika Guardian, 1 August 1932, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times MONDAY, AUGUST 1, 1932. WAR DEBT SETTLEMENT.

The proposal emanating from Senator Borah fo-r an international economic conference should if it eventuate.?, open thd way for a- real ‘war -debt sett.emient, Mr Borah has taken a good deal of convincing on the point, hut time and conditiofts are changing public opinion in tha United States regarding the obligations to collect the war debts—seeing that they were incurred iu the common interests of the pre-se-rvaion of civilisation, Besides, for a long time past there has been an influential leavjn of public opinion in the States, so that it is not surprising that there is a turn in the trend of political thought on this large subject. It may he that Mr Borah has become inpres ed with the units of the British Empire getting together in the matter of self-pre-servation, seeing that tariffs play smm a part in resisting world trade. The suggestion may be advanced to anticipate any possible outcome at Ottawa which ntight further add to the trading difficulties of countries outside the Empire. In that event Senator Borah’s proposal would be on the tapis for immediate consideration. The moment for the suggestion is not actually opportune for the United States. The country is now on the eve of a Presidential election, which in any case, will rock the political foundations of the country on home topics. If a scheme to wipe out the war debts were brought forward at this juncture, it might possibly wreck the hopes of victory of the sponsoring party. Mr Borah’s proposal is a change in the •hitherto acknowledging policy of the country, regarding, war debts, which is to deal separately with individual debtors according to their ability to pay. This Is a very one sided attitude considering that all the debts Were for the- common, weal, and it is' probably not surprising that In many quarters there is a desire to be mote fair 'all round. The proposal has: Helen swell received in Europe, which is so heavily burdened with war debts, the payment of which will be responsible with the suggested loss of reparation payments from Germany. Actually, matters are approaching a deadlock in regard to war debts, for Germany is not able to pay her contribution, and the dehtpr nations to other countries are equol'y unable to pay. This condition is apparent to the world, and it must be fully realised in America. Great Britain alore is meeting hkr obligations to the United States, but Britain’® position is growing more difficult because her debtors in Europe are notable to pay the debt l which Britain incurred on th'tir behalf and for the common purpose of winning the war. As time drags on these war debts are mounting up through default and accruing interest payments which cannot be met. The war debts are as a rolling snowball gathering in size as time goes on. Jf Senator Borah’s effort is n-ot immediately successful, somei similar move from some- other [source must eventually come to pass, for the war debts, otherwise, will assume dimensions which will} bankrupt the: nation's concerned for all time.