U.S.A. ATTITUDE

Hokitika Guardian, 3 December 1932, Page 5

U.S.A. ATTITUDE

DEBT QUESTION CONGRESSIONAL OPINIONS. (United Press Association—By Electrio Telegraph—Copyright.) WASHING! 1 JN, December 1. ‘The “New York Tunes’” Washington correspondent/says: Such observations as were made in Congressional circles to-dav reflected an unfavourable response to th e British note and a determination to insist upon no change in the debt status; but it is recognised that this attitude may be modiilied once the forceful arguments of Britain have had time to make themselves felt. How far the president will go in his communication to Congress on December sth., in transmitting the British note, may be affected by the reaction of the next few days among Congressmen and throughout

the country of the British appeal. Six Senators and four members of the House of Representatives, each speaking for large groups in their respective Congressional bodies commented adversely to-night. Senator Robinson added:. “I do not understand it to be th© purpose of my associates to defer the payments due on December loth. 1 ' Senator Byrnes added to his previous observations: ,! The United States Senate will sympathise with the troubles of the foreign nations, but it will also sympathise with the plight of our own people and it will not transfer this additional burden to them.” Senator Johnson said: “I persist in my opinion that Britain should pay.” •Senator 'Shipstead said: “We must insist on payment.” N Vice-President-elect Garner said: “There is not any chance of the postponement of the debt payment.” Representative Collier added; “My attitude is unchanged. For some time I have thought it the best thing to let th© matter come to a head.” Representative Rainey said: “The mind of the House is made up! It will not agree to apy postponement.” Representative Stoll said: l lf the Republicans controlled the House, there might he an arrangement to talk to the debtors, but it is up to the Democrats.” Simultaneously with th© publication of the British Note there is the publication of an artiole written by the President-elect, .Mir Franldyn Roosevelt, for a popular magazine of the widest circulation. It is his most important pronouncement of public policy since his election, and is entitled. “Your New National Leadership.” The article says: “The debts owed to the United States by foreign Governments must tie paid. It is sound common sense to assist the debtor in every way, but there is neither practicality. nor honour, in cancellation. The 'stabilization of world finance can best lj© achieved by a clear under* standing of our just obligations. The policy of unduly favouring foreign private loans has resulted in more great sums being owed us; and has failed to achieve any real international uajity, economic or otherwise; • and has confirmed foreign hopes for the repudiation of debts'. The new leadership will deal fairly, honestly and sanely with this situation. It will remember,, however, that, as society is now organised, we are divided into nations and it is the duty of our national Administration to first consider the welfare of its own people. I feel strongly that the welfare of the world depends just as. much upon ourselves as it does upon others but there is only one view to be taken of these great money obligations between nations. These sums represent the national labour of 'a great mass of individuals.”

Among the statements 'and viewpoints the most considerable comment here are the following:—The intimation that the United States will not be exempt from disastrous consequences of a further fall in the price of commodities; that the debts cannot he separated from the reparations; that the Lausanne arrangements were made with the cognizance and appoval of the JTnited States; that the effect of the American tariff has been to res•triet the import of manufactured goods which Britain produces; that further restrictions on British purchases of American goods would he necessary if the debt payments were: resumed; that the ultimate settlement of the debt question would in no way be affected by a resumption of the December 15th. payments; Britain’s association of herhelf with the United 'States as being both creditor nations who find it the greatest wisdom to make remissions; that the burden of the American taxpayer would not be so greatly increased as would be bis losses and the losses of the world consequent upon a failure to revise the settlements

ROOSEVELT LEAD EXPECTED. WASHINGTON, December 1. president Hoover and bis chief councillors, indicated immediately after reading till© document, in words of at least one newspaper corresoondont: “It. is a. faithful exposition of He effect of tl'e 'V’ n r debt burden on the

world, and a true prophesy of what will follow Congressional obduracy.” The “New York Herald’s” chief Washington correspondent telegraphs: “If the Hoovetr Administration had constitutional power or political influence, the British ease for the postponement of its war payment would be won but he and his advisers have no hope that Congress will act favourably either on the British proposals or on any made by the President. Though men in office want to stay, and power, is .seldom surrended willingly, it can be said that the sentiment of the Hoover Administration to-day, after reading the communication from Britain, is that President Roosevelt is welcome to fun the world that he will find after inaugural day. The only hope they see is in a steady campaign for the education of tlm mus«o« on this abstruse subject. With the situation growing worse every hour, while they do not at present despair that President Roosevelt will lead, and not follow Congress, they believe that grim facts will force him to take that fad much sooner than even next March. The British Government stated the economic case fairly and. prophetically to-day.” CONGRESS UNCHANGED. . WASHINGTON, December 2. The Speaker Mr Gayner, predicted to newspapermen that,. despite the British note, Congress Was not going to change the situation. LITTLE SYMPATHY SHOWN. TO BRITAIN’S DESIRE. (Received this day at 9.‘2ft a.m) •: . WASHINGTON,, December 2. “I said to Mr Hoover, when I was down at "Vyhite House a week or so ago, that the sooner the European nations realised that the United States expects to be paid, the better off the wliol© world will be,” Mr Garner said. “I still think so. Debtor nations may continue to talk about it all they please but Congress will not do anything about it- We have the right’ over here to do what we think best just as they have.” Others on Capitol Hall also expressed opposition to acceding to Britain and France.

It may not b e necessary to reply, Mr •Stimson told newspapermen over his shoulder, '?,s he left White House. While he was not elaborate, Mr Stint,son’s statement is understood to mean that the Government feels it® position clearly. It is stated in replies to original requests and latest communications flint at present there are no new proposals reoniring answer. Mr Borah, chairman of tlt e Senate Fo-uhm Relations Committee, said that th, & wtyr debts owed! United States were only one cause of the world’s economic troubles, and it was unfair to ask the American taxpayers to contribute their part for the remov'd of these causes, and leave behind causes which will make their contribution wholly ineffective.