The daily times., 1921-10-14
BRITISH MOVE FOR
WAR DEBT CANCELLATION.

WAR DEBT CANCELLATION.
London, Oct. 10-The Daily !
Chronicle is publishing from con-
tributor a series of articles on trade |
depression and unemployment and the
remedies for the same.
Today's article argues that British
trade can only recover when the
trade of other countries RECEIVERS.
Therefore this country should tax the
lead in helping their countries to
allies" says the article, they are all
financially indebted tc us. Any repay
ment of their debt or interest on
their debt made to us will have an
immediate effect on the exchanges,
so that their foreign purchasing pow
er is lowered. In other words, each
payment to us Of debt or interest has
an effect upon our exports as bad
for us as that of tariff directed
against us. Our allies misfortune
turns out to be also our own
To these considerations we may
add the fact that it is extremely un-
likely that most of our allies, in any
case within any reasonable time, will
have the means to repay their debts.
Let us, then, face the issues frankly.
We cannot tell when they VIII be in
position to repay their debt. and in
the meantime it is doing harm to
them and to us. If they could repay
tomorrow the setback to dur export
trade would be greater than the
benefit to our exchequer.
II would propose, then in the first
place all-round cancellation of in
ternational debts. 1 suggest we should
urge upon our allies and upon Amer
lea that we should take in concert a
step which in the short run as we'll
as in the long run would benefit all
OF us; that America should cancel the
British and allied debts to her. that
We should cancel the allied debts to
US, and that all of us should even
cancel our claims for German repara-
t1on except for restoration of the de-
vastated areas upon certain condi-
tions.
Those conditions should be that
Germany accept policy of deflation
on terms to be agreed upon, and that
she should undertake to restrict her
duties on imported goods.
The rena aratinpc poup,,,,+
Germany to the Allies at the end of
august had remarkable effect on
'he exchanges. Her purchase of for
elgn securities had such an effect on
ehe mark that within few weeks
more than $50 marks were required
10 purchase pound, which before
mad been exchanged for less than 800
marks. Any trade done on such var
liable currency values is gambling u,-
oer such conditions Germany and the
countries economically dependent on
ner cannot afford to buy our goods.
But supposing America and the
Allies do not agree to this. then T
would still propose that all allied
debts to Great Britain should be can
celled outright in the financial in+er-
ests OF ourselves and our Allies and
70 the promotion of better under-
standing and good feeling. Nor is If
likely that if we pursued the moro
generous and surely more enlightened
course the United States could long
1all to follow suit. Could she 1one
stand out to her own palpable disad-
vantage and discredit,"
The board of the Manchester
chamber of Commerce today passed
a resolution urging on the Briti.b
government the expediencv of on
deaVoring to arrange for cancel,ation
or remission of inter-allied indebted-
ness arising from the war as one NJ
the most practical steps to ameliorate
the existing chaotic conditions of for
elgn exchange largely responsive for
"aenatlon in trade and for unemn,ov.
nent."
:'>~fls.
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