The Washington times., 1933-04-21
co
DEBT REASONS
Of DONALD
Premier, Arriving Today, Seen
Forced to Find New Argu-
mentS for Deferment
BY GEORGE r. HOLMES

BY GEORGE X. HOLMES
j. Ramsay Macdonald, the
British prime minister, sets foot
in Washington late today. to be
confronted with a.. new deaP
radically different from that
which he expected when he
sailed from Southampton a
week ago.
Americas abandonment of the
gold standard, leaving the dollar
to find its own level among
the churning currencies of the
world. has had the effect of re-
shuffling the diplomatic cards
to be played in the series of
conferences that begin at the
White House tonight.
Argument Offset
Opinion is virtually unanimous
in diplomatic quarters that Mr..
Macdonald has been deprived OF
his chief bargaining point by
Americas departure from the
gOlQ SC&uOAEQ.
For almost two years the British
government has managed" its
deprecated pound sterling to the
detriment of American commerce
in world markets. at the same
time complaining that the dear.
ness Of the dollar made payment
of the British debt to the United
States impossible under existing
circumstances.
This was the strength Of the
British hand-to force concessions
from America in return for
Britain's re-embracing the gold
standard
Two in Same Boat
Now the dollar is in the same
boat with the pound. Both are
deprecated in the worlds ex-
changes. The British can no
longer use their deprecated pound
sterling against the gold dollar
to capture foreign markets, and
the force of their argument that
they cannot pay their debt In
dear dollars" is entirely lost.
They can, if they want, pay off
at a discount of some IL per cent,
and pay most of this years in
Stallment in silver
Just how Mr.. Macdonald is to
meet this new situation remains
to be determined, but the betting
in Washington is that the dis
tinguiShed visitor has had to drop
regretfully all his prepare
speeches and arguments into the
Atlantic within the past 48 hours
and chart a new course.
Washington Amused
Washington has been highly
amused at the chorus of indignant
criticism in the British press over
the American move-criticism of
the United States for doing pre-
cisely what Britain did in Octo-
ber, 1881.
The betting in diplomatic circles
is, too, that Mr.. Macdonald would
give much to have a few hours
quiet conference with M. Herriot,
the French envoy. who is two
days behind him on another YES
sci, before undertaking his con-
ferences with President Roose-
welt.
The united front" of Americas
foreign debtors, of which so much
was heard a few months ago, has
been pretty effectually broken,
first by Mr.. Roosevelt's inviting
them separately to come to Wash
ington to discuss their problems,
and, secondly, by Americas de-
parture from gold.
Opportunity Lacking
And, oddly enough. the program
drawn up for the visits of Mr..
Macdonald and M. Herriot has
been so arranged as to leave virtu-
ally no opportunity for them to
get together alone during the
three days their visits run con-
currently.
Mr.. Macdonald stays at the
White House; M. Herriot at the
French embassy.
Almost all their waking hours
are taken up with separate con-
ferenceS. teas, dinners, garden
parties. lunches, ct cetera.
Waldo Clark HennS