INTER-ALLIED WAR DEBTS.

Timaru Herald, Volume CXXIII, 27 March 1926, Page 9

INTER-ALLIED WAR DEBTS.

AMERICAN ATTITUDE CONDEMNED. CHANCELLORS JN AGREEMENT. By Cable—press Association—Copyright. Australian and N.Z. Cunle Association. LONDN, March 2A. In the House of Commons, Air Philip Snowden said that Prance and Italy wore commercially prosperous. Their severe competition with British guotls was being subsidised out of the British taxpayers’ pockets. .It was generally agreed at the time that America’s lean to our Continental allies was a gift, iis a sort ot compensation for America’s late arrival on the scene of battle, it Hie time came for really practical negotiations in connection with Russia's debt, lie would advocate with Russia, as with Prance and Italy, justice to this country before magnanimity to another. Mr Winston Churchill said he did not lind himself in fundamental disagreement with, Air-Snowden on any matte,r of serious-principle. He agreed that debts should not be treated isolated!,y, but as a whole. Mr Churchill mentioned that successive British Chancellors would have to pay America £.100,000 daily for more than three generations. Russia- had repudiated both 'her civil and war debts, but that was not the last word from Russia. Things were changing. . The Bovict rulers were beginning to see the importance of world credit. The chief difference of opinion regarding the French settlement, was Britain's insistence that a yearly payment of £12,500,000 should be levied solely. The credit of France was not contingent on reparations. Prance argued that in the event of the total failure cf the German reparations, she could not ho expected to continue payments. T.-'iat difference remained a ddlicult obstacle, but lie was hopeful that discussion would he resumed at an early date. If matters in th c future worked out on the basis of the Balfour Note, Britain would receive £33.500,000 yearly. Thus there was a gap of £1,500,U00 short of what Britain was paying America. Perhaps Russia some day would be anxious to ii!l the gap. At any rate there wa.s a place for her. 'The Chancellor said that it was a remarkable iaut that America at. present was receiving, under the European arrangements, a .sum approximately equal to the amount of Germany’s reparations, the bulk of which went to Prance, while Britain was paying America largely out of her own resources. Eventually the United States would be receiving directly and indirectly, at. least CO per cent, of the total reparations payable by Germany These would march, in an unbroken stream, across the Atlantic, to that wealthy, prosperous country. He believed these facts would not pass out of the minds of any responsible persons in either the United States or Europe.

REPAYMENTS TO AMERICA. STATEMENT BY SECRETARY OF TREASURY. By Cable—Pre»s Association—Copyright. Australian and N.Z. Cable Association. NEW YOKK, March 24. “America’s war debt settlements witli European nations were the most favourable obtainable, short of force,” Mr A, W. Mellon (Secretary of the Treasury) declared in an address at the Union League Club. Touching on the moral obligation to assist- other peoples to clear away the wreckage of the war, Mr Aleflon said: “We do and We will carry out tins duty.” The Administration believes ill help and not charity, and financial policies toward Europe are backed not by sentiment, - but by sense. Mr Mellon’s address was prepared prior to the remarks of Mr Churchill (British Chancellor) in the House of Commons on Wednesday. Mr Mellon said: “If Europe is to be re-established on a sound basis, Europe must balance its budget; its war debts must be funded, and the American investor must intelligently and profitably invest the surplus of his capital stock abroad.” Referring to criticism that the debt settlements were too lenient. Mr Mellon said lie preferred solvent customers with the prospects of profitable business in the future, rather than force his customers into bankruptcy.