WAR DEBTS

Hokitika Guardian, 22 August 1932, Page 8

WAR DEBTS

-A NEW POLICY

SENATOR BORAH EXPLAIN# HIS ATTITUDE. ' r

NEW YORK, August 18. No political event more striking or in its way xnor,e startling, has occurred in America since -the Hoover .moratorium than Senator Borah’s declaration', on Saturday night, .that, war debts might be revised. The Senator from Idaho was scheduled to give a radio address on the Lausanne agreement He surely started at Lausanne, but he finished in Washington. He ,opened on a high note, “‘ThatfV appalling struggld which began eighteen years ago seems to be drawings to a close. Lausanne,, eyen more .than .Versaillefj, is the harbinger of peace and the hope of humanity.” ,

DISARMAMENT. ’ ;

After outlining the settlement, in which Germany’s debt, once ;fixed 1 at thirty-one thousand million dollars ‘had been scaled down to £714,000,000 doi-. lars he went on to say that the world could not get confidence back'- again while Europe remained an -armed camp. - ... . > • 'V" “What the world wants,he ,“con-i tinued, “and must have, if a veritable collapse is to be avoided, is the restor-

ion of confidence—faitlj in Govern* ment and governmental polici&s, fa.til „<h,o when money is invested it willi not be all grabbed for taxes, faith of the labourer that he may enjoy the legitimate fruits of his labours. Lausanne is the most important step taken since the war looking to the restoration of confidence in political and business affairs.”

DEBTS TO AMERICA

“The adjustment of reparations at Lausanne lias brought to thefront again the question pf the debts owing to the United States from certain gov., ernments in. Europe.. What -is to be our attitude toward readjustments-!-or cancellation? Has a new situation arisen -which makes it necessary for our people in their own interest- to reconsider the adjustment of these debts heretofore, made? I do not think it would be correct to sayi that ’ a-new situation has arisen.sj'But 1 think that of the. policies initial!^; at: Lausanne are carried forward there will come a time when it-wi'll be tinctly to tire interest -of the people of . ; the United .- States to consider again the question of these debts. --f*!}

AN AMERICAN QUESTION

“.The debts due the taxpayers pf the ' United States for money leaned o.eign governments are just debts'. Every equity- of the debtor has. been allowed. A generous reduction- has been made. It may be further con-

.q'dfcd for the sake of argument and

f-or the 1 sake of politics that reparations and debts are separate, and distinct propositions. There can he no . reason, therefore, for urging a reduction or cancellation of these debts other tfian that it would be in the interest of the people of the United States to do so. Upon that theory, and that atone, it seems to me, is the subject open for discussion: Will-re-duction or cancellation bring to the people of the United States an equal or greater - benefit than the amount

which, they may collect from: the debts .? Will such a course open foreign mar-:, itets for the products of the farm and the factory, cause the price level to rise, .put an end to unemployment, and thaw out the frozen credits of the bank? •' ; 1 • “I entertain the belief that the cancellation of the debts in connection with, and as a part of, a programme,, including the settlement of other wap problems would have the effect above indicated: But I am equally clear that the cancellation of these debts, with nothing more than the present .reparations adjustment would not have the effect above indicated. To put an end to this depression is no less' a task than that of ending the war, and in mjr judgement, it can only -be accomplished with the same breadth and thoroughness as that which ended the war.

ECONOMIC CONFERENCE.

“I know of no other way to bring into effect a programme such ,as would justify the reduction or cancellation of the debts and bring about a better condition, economically and financially, than by means of an economic and monetary conference, a conference which would be permitted td deal with reparations and debts, disarrangement, the re-establishment of the gold standard (thirty-one nations now being off the gold standard), the stabilisation of silver in the Orient, and possibly other questions, tl d<f not overlook tariffs, but flies© will,, in my judgment, have to be adjusted through the action of the respective .governments which will be made possible after the adjustment of other; problems. , Enlightened self-interest will urge such a course upon the part of the respective governments which will-be, made‘ possible after the adjustment of other problems. Enlightened self-interest will urge such, a course upon the part pf the., respective governments after, the other problems are out of the way. ,

! , EXPERTS BARRED. t f ,?Such conferences ought to.be 1 qr.i'wd ■to deal with, afty ecopomm jgiid financial ,qiiestionfc wJbiclv I any legitimate bearing upon the eco-

nomic recovery of the world. We should not hesitate, as a government,, to take our place in such a conference ; and be willing to deal with all economic and financial . problems which are associated with the present condi.tion of affairs. At this conference . I would exclude, all experts—at feast I would put ' them on the other end of the. long-distance telephone. They ,-would sterilise the humanitarian impulsed of angels. The problems have -.passed beyond the refined theories, of experts. They call for the breadth, the vision, the courage, .the humani- . tariauism of Lausanne. The. stakes ! are tremendous. Delay is hazardous. Sixty days of depression in the latter part of 1932 will be more devasting than six montlis in the latter . part of 1930. If the upward trend does not start before the cold winds .•of ( Decembe,r, 'conditions will be nothing less than appalling. We should enter such a conference where there is so much involved without any limitation" arid with, -no other . objective than to aid in the preservation of modern 'civilisation.” . -