DEBT SETTLEMENT

Hokitika Guardian, 26 January 1933, Page 5

DEBT SETTLEMENT

BALANCE SHEET

SUBMITTED BY CHANCELLOR. (United Press Association —By Electric Telegraph—Copyright.) LONDON, January 24. Mr N. Chamberlain, addressing the' Leeds Chamber of Commerce, regarding the American war debts message, reiterated that cancellation was the best tiling" for the world, but if this view outstripped current American opinion, a conference was welcome whenever America was ready, so long as the settlement was final, and did not involve a renewal of the claim of reparations from Germany, because I any disturbance of the Lausanne Agreement wou.d re-open old wounds. Mr Chamberlain said that lie believed that a revival of confidence ■ was justified and that it would continue in 1933 in the absence of any uuforseen setback. “But we have not reached the limit of economy,” he said. “We should still find many things that could be done without.” He desired, for the information of the American farmers and public, to submit the following war debts balance sheet covering the period from 1922 to 1031: Payments by Europe to tho United States:—War debts, ’ £400,000,000, interest on commercial loans £1,000,000. Surplus European purchases of American goods over American purchases of European goods:—£l2oo. The other side of the balance sheet showed how America had been paid, namely:— American tourists expenditure in Europe and immigrants remittances: £1,500,000,000. Shipments of gold to America, £100,000,000. Loans raised in the United States: —■ £1,000,000,000.

Thus, lie said, the war debt payments had -only been made possible by the American loans. The European debt payments would only be resumable by increased sales to America, and by reduced purchases from America, the former involving a drastic reduction of the American tariffs, and the latter depreciation of our currencies or higher tariffs against America.

He said he was not using any threats when lie warned America that insistence on payment of the debts meant that they were approaching the edge of a precipice that was likely to drag us down, with them.

STABILISED FOREIGN CURRENCY OR AN INCREASE IN TARIFF? (Rceived 8.35 a.m.) WASHINGTON, January 25. President Hoover feels that the United States is faced with the necessity of either increasing her tariff walls or action to gain stability in foreign currencies, and it is considered possible that moves will be made for speeding up the approach to the world economic conference.

It was stated by a high administration source that the President desires to avoid a major increase in tariff but feels that it may be necessary unless the world conference can act quickly to bring greater stabilisation to foreign currencies.

Tt is stated that he believes 4 that only in the past four or five months has the United States felt the full reaction from the departure of the various European countries from the' gold standard. Figures have been placed before him', designed to shown that goods from countries of depreciated currencies have been flowing into the United States with increasing intensity.

SOLUTION LIES WITH AMERICA.

TO GIVE LEAD TO THE NATIONS.

(Received 8.35 a.m.) LONDON, January 25

In an article “World Recovery and War Debts” in the Lloyds Bank review, Mr Hal Fisher says: “Europe cannot say - the world “default,” in view of the American Government’s repeated declaration that such, a solution wa s entirely inacceptable, and Europe cannot ask the United States to sav the word “cancellation-”

“Let America use her great economic position and press for a reduction in high tariffs which are throttling European trade and herself, by the offer of a liberal tariff revision, and give an example which other nations may follow. The cause of the present economic discontent is the existence of high tariff walls,'.’dividing state from state.”