The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1922-12-20
ENGLAND
WORKING TO
CANCEL DEBT
With Europe and Al
lies United to Dodge
Payment of w a r
Loans United States
Has Slim Chance to
Collect

London, Dec. Il (By the Asso-
ciated Press) ).-Prenie Bonar
Law in an important statement in
the house of commons today de-
clared frankly for the policy of
the Balfour note, which advocat-
ed an adjustment Of interallied
debts by an all round cancellation,
England. on her part surrendering
her share of reparations to be paid
by Germany Thus the prime min
ister indicates the new government.
despite first declaration that the
Balfour note no longer existed so
far as the present British goy-
ernment was concerned and that it
would not consider itself bound by
1T, feels impelied to the same pol
icy as the previous government.
The remainder of Bonar Laws
|speech was clearly addressed to
both France and the United States
to France, plea of modera-
ton in dealing with Germany on
the ground that that country is al
ready on the verge of collapse; to
America. call for help and CO.
operation in settling the difficult
problems of reparations and in
terallied debts.
Another important phase OF his
speech was the dark picture
drawn of Epgland's economic and
industrial future should the much
hoped for improvement in trade
not lnaterialize.
The prime minister showed the
utmost anxiety that there should
be no misunderstan nding of British
feelings towards both France and
the United States and said it was
only England's difficult position
he was making clear. England
was burdened with very heavy tax
alton, which was a clog on indus
trial enterprise resulting in ter
rible unenployment-a problem
that made it necessary first that
there should be no military oc-
cupation Of German territory,
which would still further handi-
cap European trade without pro-
dueing 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 nothing 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 ex-
pected to pay her debts. while
others who had made no such sac
rifice escaped. and the warning
that too sudden deflation in Ger
many might produce there all the
evils Of unemployment from which
other countries are already suffer
ing.
) In the subsequent discussion the
most noteworthy contribution was
by James Ramsay Macdonald, the
Labor leader. Lloyd George also
spoke but confined himself to
brief expression OF a complete
-
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. He differed from the
prime minister. however, in beGev-
ing that it was inadvisa bic to mix
together too much the questions of
reparations and interallied debts.
He admitted Germany possessed
enormous industrial possibilities
yet she must be carefully handled,
or she would follow Austria into
bankruptcy. He feared both
France and England would need to-
lower their expectations from Ger
many very substantially.
Declaring. that reparations were
a curse to both those who paid
and those who received. the Labor
leader said the real question was
not what Germany was able to
pay. but what the allies could af-
ford to receive, and even if Ger
many could pay the full amount
demanded it would not be 20 the
advantage of the allies to receive
it. France must remember that
England had her own trade to
consider and while threats of mill
tary penalties were mixed up with
economic aims peace would be i'm