Evening star., 1932-11-18
SNOWDEN STANDS
FOR DEBT REVISION
Former Chancellor of British
Exchequer Hopes for
Cancellation.
(contlnued From First Page.)

the revision of the Anglo-American
debt Agreement Its terms were far
more onerous for Great Britain than
the terms America subsequently gave
her other European debtors.
Had the British debt been funded at
The same time and on the same terms
as the French debt to America, we
should have paid by June, 1881. $23N,-
1000 instead of 81 $50, 100000. On
this basis, to place Britain in the same
position as France, the British pay
ments to America should be completely
suspended until December. 1899.
Though the legality of the Anglo
American debt is not questioned, J.
cannot be justified in equity.
America declared war on Germany in
April, 1917. She did 50 on the declera-
tions Of President Wilson and others
because Germany was making war on
American ships and killing American
sailors. It was not to make the world
safe for democracy but to make
American trading safe; or, in the words
OF the oficia1 appeal for loan subscrip-
tions, "for her economic protection and
welfare"
The American Governments loans to
the allies were all contracted after
the declaration of war a bill was in
troduced into Congress authorizing the
United States Treasury to give credits
to the allied governments. 1t was
pointed out by all speakers in debate
that it would be a long time before
America would be ready to take any
effective part in the fighting, and that
meantime the most useful way in which
she could help the armies in the field
was 10 give them money. For Is months
that was Americas contribution to the
war; and meanwhile the allies were
spending their money and doing the
fighting.
Held War Contribution.
The sums advanced by the United
States Government to the allies. which
constitute the debts to America, were
in fact Americas contribution to the
cost of the war she had declared on
Germany
After Americas entry into the war
Britain borrowed from America S4075,-
0.000. And she lent her allies So
600 ,0OO, 900. It Is fact that if Britain
had not advanced this enormous sum
to the allies 1t would not have been
necessary to borrow from America.
A further strong reason which JUS
tifies revision Of the debt Is to be found
in the story Of the war profits made In
America from the outbreak of the war
up to the time OF Americas entry into
1t. The United States was great mar
ket for the supply Of munitions, food
and other necessaries for war. Up to
1917 Britain had borrowed $500, 1000, 600
from her own nationals to pay for war
goods supplied by America. At the out
br&ak Of the war the United States
was in the depth Of a trade depression.
The war quickly changed that. The
demand for everything she could pro-
duce was tremendous, Prices rose SKY
high and profits were enormous. Her
exports to Europe trebled during the
war.
Mr. Baldwin put the true nature OF
the debt very well in statement TO the
Foreign Debt Commission ct Washing
ton, He said: The debt Is not debt
for dollars sent to Europe. The money
was all spent, In America. American
labor received wages, American capital
lists the profits and the United states
Treasury the taxation imposed on these
The money lent by the United States
to Europe as q substitute for her active
military cooperation during the first
is months after she declared war was
made out Of the war before she en-
tered it. ~
Mr. Baldwin agreed to the funding of
the debt ON terms which exacted the
uttermost penny from U.s. 1t Is the
agreement under which Britain under
took to pay over a period of 62 years
the total sum of $1,000, 900 300 on
a debt which at the time OF funding
amounted to 1900, ,000, 900.
These facts establish case not mere
" for revision, but Tor cancellation.
The creditors of Germany have vir-
tually Cancelled reparations. Britain Is
ready to cancel debts owing her by
her former allies. 1t rests with Amer
ica to be equally generous and thus
wipe the slate clean of reparationS and
debts which have been throttling in
ternational trade for ID years.
Since 1920 Britain has been willing
10 forgive her debtors if her debtor
would forgive her. This would mean
that we should on the balance cancel
twice as nsuch due to us as America
would be asked to cancel.
Proposal Rejected.
This proposal America has declined
10 accept, It was first submitted by
Lloyd George in 1920 to President Will
son. He rejected Il emphatically and
at the same time demanded that Brit
ain should begin to repay the Amer
lean debt.
Having failed to get cancellation OF
debts the British government announced
that It would not take more from rep
arations and from its debtors than was
needed to pay America. AS matter
Of fact we have not received what we
have paid to America. We began b
ala fATrF
we started to get anything from our
debtors, and we are two hundred mil
lion pounds to the bad. This the Brit
ish taxpayers had to provide.
America has adopted the attitude that
she would not take any reparatlonS
from Germany In fact, she has mad
s83, 900, 600 directly from reparat'ons,
and up to June, 1891, AZ per cent OF
reparations has accrued directly or in
directly to the United States. In the
year ending June 80, 1888, the United
states would under existing agreements
receive nearly 10 per cent Of German
reparation paymsnts.
Held short Sighted Policy.
1t is short-sighted policy for the
United States to maintain her ati-
tude on debt cancellation. Enlightened
American opinion fully realizes that.
The United states Secretary OF the
Treasury has said: "The entire for
eign debt is not worth as much to
the American people in dollars as a
prosperous Europe as customer"
A survey Of world trade recently
published by the Economic Section OF
the League Of Nations reveals the close
relation between the decline of trade
and international debts. OF all leading
commercial nations the United States
shows the largest loss in exports.
Debtor countries have tried to ad-
rust the balance of their international
payments by curtailing their purchases
of goods from creditor countries. The
American debt can be paid only in
goods or gold America is surteited
with gold, which Is lying useless in her
vaults. She keeps out goods by her
high tariffs. 1t Is an impossible policy
which rs ctirsing both creditor and