Evening star., 1923-01-08

Speaking broadly. If may use the
phrase. spotted prosperity is i'm
possible. II on the economic map OF
the world there is a spot OF pros
persity surrounded by distress that
spot will not spread 10 bring health.
but 1t will be wiped out by the
poverty and misery that surround il.
In this spirit l address myself to
the task before us. l shall now con-
slider the subject more in detail
Had 1t been possible TO find in the
world nugget Of gold worth $4,000
600 we would have spared no sacrifice
TO secure II, and we would have
brought it with US. but, unfortunately,
the limitations of nature put such
simple method of payment out of the
question. and we have TO explore
other means
Let US examine how the debt came
into being and see If that will help
US to a solution.
"NOt "a Debt Of Dollars"
This debt is not a debt of dollars
sent to Europe the money wa all
expended here, most of il for cotton.
wheat. food products and munitions
OF war. Ever cent used for the pur-
chaSe OF these goods was spent in
America; American labor received the
wages; American capitalists the prof
its: the United States Treasury the
taxation imposed on those profits
AT the time these goods were
bought. we We're associates in a great
war. Out of $1,000, 900, 900 worth of
goods bought after the United States
came into the war. we paid for $1,000
0oo. 900 worth, leaving $4,000, ,000. 900
which were supplied on credit Now
seeing that the debt is a debt for
goods supplied. it would be natural
TO ask. why not repay with goods?
"A moments consideration is suf-
ficient to answer that question
Prices Have Declined.
These goods We're supplied in war
time at war prices. Prices have fallen
so far that thus to repay S4,00O,O O,O00.-
900, Great Britain would have to send
to America far greater bulk of
goods than she originally purchased
with the money loaned and laying
aside all consideration of the tariff
barrier. would II be possible for
America to accept repayment in coal,
iron, steel, manufactured cotton goods
and so forth. a method of repay
ment which would affect the employ
ment of her people for years 10 come"
I'VE have now seen that immediate
by gold is impossible and
that an equivalent transaction in di-
rect repayment by goods is full OF
difficulties so we shall have to explore
what remaining methods of interna-
tional payment are presented ny the
markets of the world.
Here attention will have to bel
paid to several considerations.
Assets Temporarily Frozen.
I'VE lent large sums to and estab-
lished large credits for our European
allies, so that while we are dealing
with our liabilities we find a large
proportion of our assets temporarily
frozen.
times of .unexampled difficulty. we
have made great sacrifices. We are
affected by the terrible economic sit
uation in Europe and are passing
through the worst period of unempioy-
ment in our history. ] have already
referred to the weight of our taxation
which, with the prolonged unemploy-
ment is already bearing cruelty on our
women and children.
$50 far from the war having left us
richer by the acquisition of new terri
tory, the acceptance of mandates in
some of the most disturbed parts of
the world has involved us in vast un-
expenditure in policing and
patroling territories in which we have
no economic rights which are not open
equally to other nations.
Must Guard Steps.
Having regard to all these circum-
stances, the British government has TO
the liquidation of the debt, lest an an
nual obligation be assumed which it
might be impossible to meet in years
of bad trade and falling revenue.
"In common with the rest of the
world, we have watched with admira-
ton the open-handed charity of Amer
lea to the stricken countries of Eu-
rope, to the peoples of Belgium, of
France and of Russia. The generosity
of America is proyerbial, but we are
not here to ask for faVorS or to i'm
pose on generosity.
1--WE want. on such terms as will
produce the least possible disturbance
in the trade relations of the two
countries. a fair business settlement,
a square deal. a settlement that will
the last cent of those credits which
the United States government estab-
lished in America for us, their asso-
ciates in the war.
Seeks Business Solution.
"Our wish is to approach the dis
cussion as business men seeking a
business solution of what is funda-
business problem.
May / put ii in this way? We in
tend to pay, but how. best can inter-
national credits be made liquid when
the creditor nation is unwilling to ,
permit liquidation through the direct
delivery of goods, and is also un-
willing to see the current sale of her
products to the debtor nation inter- |
ruDteQ, ana Wn6n InO Q6DIOr nation |
Is unwilling to be put in the posi- |
tion of being unable to buy the prod |
ucts of the creditor nation?
1.-THE cordial and prompt agreement
Of the two greatest democracies of |
the world on a question of this in |
tricacy and magnitude will be an ex- |
ample to the nations and long step
in effecting a solution of the !
troubles of Europe. Let US |
never forget that until these troubles
are solved, there can be no general |
revival of international trade.
For myself. I look forward to the |
of the commission with hope |
and confidence. 1 believe that shall |
not be disappointed"
Mellon Issues Statement.
Secretary Mellon, according to the |
official statement issued after the |
extended official greeting |
IN most cordial terms and expressed |
particular appreciation of the cour- |
tesy of the British government in /
having designated as its delegates |
gentlemen 30 notably distinguished.pI |
It was the first time he believed, !