The Waterbury Democrat., 1932-12-09
BY JOSEPH IT. BAIRD Jnitcd Press Staff Correspondent

fCnitcd Press Sfaff Correspondent)
 Washington. Dec 9--(U. PO = The net result to-day of new Uni ted States notes to Great Britain and France was that while the two debtors have Americas promise of later relief they still are expected to pay $125,000,000 on December 15.
 Britain was invited to submit it's own method of payment, London reports indicated, however, she had decided to pay in gold.
 Secretary of State Stimson In his note to London promised a "c1ose examination" of the whole debt problem. But he warned this offer did not imply a willingness to can eel the debt. He again suggested that disarmament would help Eu- ropes debt case.
 Tho note to France was handed to Ambassadors Paul Claudel last night. It's publication was delayed until it reached Paris. It was un- derstod to follow the general lines of the reply to London.
 Stimson's note to Great Britain, while authoritatively interpreted as "hands across the sea" gesture designed to appease British public opinion and obliterate the picture of Uncle Shylock", contained some frank phrases. Replying to Arguments made by the last British note, it:
 l. Denied that the war loans were all spent for shot and shell. Much of the money was spent for goods-cotton, tobacco and food and a part of this was sold by the Borrowing governments, Stimspn maintained. Hence he could not admit that the loans had been wholly ''unproductive."
 Z. Denied that the United States endorsed the Lausanne reparations agreement. and quoted British treasury statement to support his assertion.
 3. Recalled that Americas gold supply in 1924 when debt pay ments began and now were almost Identical in size. thus seeking to prove that war debt transfers had not gorged the U. $. treasury with gold.
 4. Replied to Britain's argu- nent that payments were difficult Decause the United States would HOI Ouy ouIilCleHL SOOuS uUTOdu. Stimson asserted that gold had flowed eastward across the Allan tic through other channels than trade. Between 1924 and 1880, he said, American tourists spent $3,- 900.000.000 in Europe and immi- grants here remitted $1,495,000,- 900 to their homes, in comparison with $1,673, 100000 paid on war debts.
 N5. Declared that the debt pay 1nents have been q minor item in international money movements and said the British note 'over- emphasized" the importance of war debts on world economy.
 Tn short. Stlmson's note was a succinct presentation Of the lea- sons why the United States feels that debt cancellation is not justi- fled. But after putting himself on record, Stimson adopted softer tone.
 He said he felt Confident that the congress will be willing to con sider any reasonable suggestions made by your government" as to methods of making the December 15 payment as easy as possible.
 Then i'll the following paragraph he promised the United States would be willing to cooperate ir reconstruction of the debts anG allied problems:
 Whatever part debt payments may have played in the economic history of the post-war years. it is clear that in the present condition of worldwide depression. accom-. panied by sweeping fall in prices their weight has greatly increased and that they have q very definite relationship to the problem of re covery.
 "The president of the United States is prepared. through what ever agency may seem appropriate in cooperation with the British government. to survey the entire situation and to consider wha means may be taken to bring about the restoration of stable currenciei and exchange, the revival of trade