Evening star., 1922-12-15

government had sought tho advice Of
the New York group Of financial bank
ers regarding latest phases Of the
reparattons discussions.
UNABLE TO PAY o. S.
LONDON. December 15.-Premier
Yesterday. .:5clared frankly for the
policy of the Balfour note, which ad-
vocated an adjustment of interallied
debts by an all-round cancellation.
England: on her part surrendering her
Germany. Thus the prime minister
indicated that the new government.
despite its first declaration that the
Balfour note no longer existed 50 far
was concerned and that It would not
consider itself bound by It. feels I'm
pelled to the same policy as the pre-
vious government.
The remainder Of Mr.. Bonar Laws
speech was clearly addressed to both
France. a plea for moderation in
dealing with Germany on the ground
that that country is already on the
verge Of collapse; to America, a call
for help and CO cooperation in settling
| the difficult problems OF reparattons
and interallied debts.
Another important phase Of his
| speech was the dark picture drawn
of EnglandS economic and industrial
| future. should the much-hoped-for
Improvement in trade not materfalize.
The prime minister showed the ut
| misunderstanding Of British feeling
toward both France and the United
, States, and said that It was only Eng
lands difficult position he was max
| ing clear. England was burdened with
heavy taxation. which was a clog on
industrial enterprise. resulting in ter
rible unemployment-a problem that
| made 1t necessary first that there
| should be no military occupation OF
! German territory, which would still
| further handicap European trade
| without producing results in cash.
and: second. compelled him frankly
to face the fact that England was
| unable to pay the American debt II
she received nothing from Europe.
Warns of DeAation.
Strong points in the speech were
! the unfairness of the view that be-
cause England had made sacrifices to
pay her way she should be expected
to pay her debts. while others who
had made no such sacrifices escaped.
and the warning that too sudden de-
| fation in Germany might produce
| there all the evils of unemployment
from which other countries are al
ready suffering.
In the subsequent debate the most
! noteworthy contribution was by
James Ramsay Macdonald, the labor
| leader. Mr.. Lloyd George also spoke,
preston of complete approval of Mr..
Bonar Laws speech.
Mr.. Macdonald. on the contrary,
| gave a complete elucidation of the
policy of the labor party.
He maintained that the United
| States held the key. and was the only
| country able to give Great Britain
any help.
Great unanimity WAS displayed In
| support of the government throughcut
the whole debate. The submission of
questions drafted by agreement be
and Mr.. Lloyd George was a COM
plete novelty in parliamentary pro-
ceedure, especially as the questions
! had been shown to the prime MINIS
J ter in advance. Similarly. after Mr;
| Bonar Laws speech, Mr.. Asauith and
! M. LLOYD George had a consultation
and agreed that there was no occa-
sion for them to speak. as they were
in accord with the prime minister
announcement. Lloyd George. IN
fact, tore up his notes and also TOOK
| part in the debate to reply 10 MT
! Morels criticisms.
Cannot Forget Facts.
Mr.. Bonar Law. as usual, spoke
| without any notes $500 or any y the lob.
| bfes was that this unusual unanlmity
would not be without influence on tne
| ad iourned conference to be helo In
! Paris January =.
The prime minister saia tne Ne Opus Ens-
| ing views were held abroad that Eng
! ia1d had no interest in the repara-
lions and could afford to forego not
only her share of the reparatlons, out
the debt owing her from the EURO
mean countries. and at the same Time
pay enormous sums 10 the oh''eo
| States. . :,
| He did not wish to say woro In
criticism of America, because he be-
Iieyed America today was the nearest
to Great Britain in ideals and that
the United States entered the late
soie,y TO help the world in its strug-
gle He therefore could say nothing
against America, but he could not
forget the facts.
| Here Mr. Bonar Law recalled now
on the very day America entered the
cheouer, had the duty Of explaining to
the imperial cabinet that Great Brit
ain had exhausted her resources. nav
; ing pledged all her securities to OBJ
| tain munitions.
Continuing. he said he felt sure thai
there was nobody in tine world who
would contend that it was either right
or lust that under these circumstances
| ENGLAND alone should make payments
| fter thus having exhausted herself on
| hehalf Of her allies He pointed out en-
| Dhatically that it WAS Impossible to pay
the American debt while receiving moth
ing from Germany. France or Italy
Such a policy would reduce the stand.
| ard of living in England for generations
and be a burden the extent OF which
| those who suggested it had no concep-
| tion.
Taxpayers Made Poor.
! He proceeded to point out that Great
| Britain had secured a strong budget po-
sition and financial organization, be.
cause she had made the taxpayer poor
hut. he asked, did any one imagine these
enormous sums could have been taken
from industry without seriously imped-
! ing the possibility Of industrial expan.
| sion.
he said, I'VE might have had today much
Lass Unemployment. and the world
you'd have recognized through our less
sound financial position that we were
NOT in u position to pay these large
snms. That is the unfairness OF 1t.
"Public opinion abroad has assumed
J that we are able to meet our obliga.
| tions and help our friends. In reality
we are in no such position. We are
yearly to the unemployed"
| The effect of the unemployment he
described as terrible, declaring that
unless there was a trade improve.
| ment within a reasonable time
Britain would reach position which