Middletown transcript., 1922-12-23
URGES j. S. TO
CANCEL DEBTS
Premier Bonar Law Paints
Gloomy Picture
RETURN TO BALFOUR NOTE
Germany Near End-if It Receivers,
Says Law, It Will Be
Better on Than
England.

London-Premier Bonar Law in an
important statement in the House of
Commons declared frankly for the
policy of the Balfour note, which advo-
Gated an adjustment of inter-Allied
debts by an all-round cancellation, Eng
land on her part surrendering her
share of reparations to be paid by Ger
many. Thus the Prime Minister indi-
Gated that the new Government, de-
spite its first declaration that the Bal
four note no longer existed 80 far as
the present British Government was
concerned, and that it would not con-
slider itself bound by it, feels impelled
to the same policy as the previous
Government.
The remainder Of Mr.. Bonar Laws
speech was clearly addressed to both
France and the United States - to
France, plea for moderation in deal
ing with Germany on the ground that
that country is already on the verge
Of collapse; to America, call for help
and cooperation in settling the diff
ferent problems of reparations and
inter-Allied debts.
Another important phase Of his
speech was the dark picture drawn Of
England's economic and industrial fu-
ture, should the much hoped-for i'm
provement in trade not materialize.
The Prime Minister showed the ut
most anxiety that there should be no
misunderstanding British feeling to-
wards both France and the United
States, and said that 1t was only Eng
lands difficult position he was making
clear. England was burdened with
very heavy taxation, which was clog
on industrial enterprise, resulting in
terrible unemployment "a problem
that made it necessary first that there
should be no military occupation of
German territory, which would still
further handicap European trade with
out producing results in cash, and Sec
ond, compelled him frankly to face the
fact that England was unable to pay
the American debt if she received moth.
ing from Europe.
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.
fiation in Germany might produce
there all the evils of unemployment
from which other countries are already
suffering.
"If Germany ever ioes recover" he
position to pay these indemnities than
we should be to pay our debt to Amer
lea. That Is a fact"
Pointing out that the result of the
most terrible misfortune for Germany,
namely, the destruction of her middle
classes, has been that Germany's in
ternal debt was wiped out, the Premier
said: "If the Germans ever do re-
cover, they will be free from that ter
rible burden of internal debt that falls
on u.s."
"They are sure t ) recover some day."
he continued, 'and the sole problem
for consideration is how we can get a
legitimate debt paid whilst doing the
least possible injury to the rest of the
world and to Germany"
In the subsequent debate the most
noteworthy contribution was by James
Ramsay Macdonald, the Labor leader.
Mr.. Lloyd George also spoke. but con-
fined himself to brief expression of
complete approval of Mr.. Bonar Laws
speech