Evening star., 1932-11-29

value OF the pound sterling, which VII
further decrease the buying power Of
the British Empire. which will further
decrease commodity prices in this coun-
try, resulting in a new defation.
The exchange value Of the pound
sterling may be reduced and the effect
upon our commodity prices may be felt
but at the most the effect will be lin.
tied to surplus and export products, anc
the bearing of these on world stagna.
ton has probably already reached such
weight that further depreciation woulc
not much aggravate the existing situa-
ton. This effect is now so great thai
only necessitous demands are moving
and they will in large part continue tC
move, come what may Furthermore
the British Empire preference pact has
SO cut us off from British trade that
any benefit granted by us to the ex-
change value of the pound would fov
back to us only in small amount, II
at all
I think we should approach this
problem from an American point oi
view, but in spirit of fair play, SYM
pathy and helpfulness. To do that II
Is necessary to veer from the side OF
some of the pro-ally arguments just
discussed to little more just advocacy
of our own rights and obligations.
I am perfectly willing that We ex-
plore all the possibilities of alternative
forms of payment for the period Of this
mergency-payments In kind, In nego-
table credits, in service, in marketable
of any nature. OF course we should
always be willing to confer or even
negotiate in that spirit of sympathy
and helpfulness.
But I do not see why payments now
due should be postponed for the pur-
pose of negotiation. Any individual in
stance of a real need for postponement
should rest on the merits of that par
ticular case. Perhaps some burden may
be lightened when necessary by monthly
installments, but there is no sufficient
argument for postponement in full
Above all, we should avoid any joint
negotiation and deal throughout with
each nation separately on the merits OF
its particular case without regard tc
other cases.
Plan Held Inconsistent.
The President has urged the crea-
ton Of the World Debt Commission
manned in part by our representatives
on the World Disarmament Conference
and the World Economic Conference
He thinks that this Is necessary because
Congress has declared its policy against
cancellation or reduction of the debts
which, he intimates, deprives the EX.
ecutive Of power to treat with the
debtors. At the same time he says
that we should treat with debtors sepa.
rately and not jointly.
He Is right when he says that We
should treat separately and not jointly
But the naming of our representative;
in the World Disarmament and World
Economic Joint Commissions as mem
bers of the Debt Commission could not
possibly escape the effect of joint con-
sideration. It is absolutely inconsistent
with any idea of treating with each
debt and debtor separately and on the
merits of its individual case.
There is no law of Congress which
could, or does, or attempts to prevent
the executive branch from hearing any
thing any debtor may have to say, and
If the President deems anything SO said
worthy of the consideration of Congress
he can submit 1t to Congress. The ap-
pointment by us of a Debt Commits
sion is like appointing an ambassador
to the debtors. 1t Is a gesture inviting
them to come to us to negotiate on
their debts. and II such action immedi-
ately follows request for reduction,
there Is the strongest kind of an implica-
tion that the sole purpose of the COM
mission Is to work out some reduction.
There is no obligation, legal, ethical or
moral, for this Nation to engage In
such movements The debtor should