The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-01-16
Great Britain, the US. and
the War Debts
Even "Cdnceation" VIII Not Free Workers of Burden

problem of transfer But when
dog tries to eat dog, when in the
last stage of imperialist conflict and
decay one highly industrialized i'm
perialist Power tries TO subject an
other to tribute (Entente-G Germany,
America England), the problem of
transfer" of the tribute becomes
highly complicated; the meal de-
feats digestion.
WHAT EACH FIGHTS FOR
The United States fights hard to
maintain its creditor advantage, to
make the maximum use of its
weapon.
Britain fights, for over a dozen
years now, for all-round cancella-
ton, as expressed. in the famous
Balfour Note of 1922. This line is
acclaimed as the height of Justice"
and humanity" in Britain. In
fact, it means that the full weight
would be thrown onto the United
States, which alone is only creditor
and not also debtor.
Britain fights to establish a Eu-
ropean United Front of the Debt
ors against America (this chimes in
also with the anti-SoViet prepara-
tons. This was the aim of the
Balfour Note, and of Lausanne last
year. American plays on the diyi-
sions in Europe. This is shown in
the widely differing debt settle
ments, with the overwhelmingly
heaviest burden thrown on Britain
80 per cent of the total debt pay
ments from Europe, resulting in
a net loss of f200,000,O0 on debts
and reparations account, while
France has been left a heavy net
gamer until the Hoover moratorium
and Fascist Italy has been let off
most lightly of all. in this way
the true role of the debts question
as above all weapon in Anglo
American antagonism is revealed.
TODAY a new urgency has come
into the question. For the first
time, the question of Default, Of
lids DCSl Idlocu.
Why has Britain so far paid for
nearly ten years, and faced a net
loss of f200,000,000, rather than
simply repudiating the account on
any easily available moral or diplo-
matte grounds? This question is
inexplicable to the lingo Rother-
mere Beaverbrook press, who never
cease to abuse Baldwin for the set
tlement. In fact the explanation
is simple and obvious. For Britain
is still net creditor. Britain is
still the largest world creditor,
drawing some three hundred mil
lion pounds year of tribute from
all over the world. The risk of the
loss of this by encouraging repu-
diation could not be faced. AS the
London Times stated in its issue of
November oath:
IF Great Britain of all coun-
tries were to repudiate her obliga-
lions, she would set an example
which would be eagerly followed by
every debtor country in the world
possibly NfClI ny DllkdJt
with incalculable results"
Here is the dilemma which has
drawn together the two world usu-
rers in simultaneous antagonism
and yet apparent unity
But with the strain of the pres
ent crisis Reputation has become
practical politics in Britain. That
is a measure of the extremity of the
crisis. Reputation has been seri-
ously discussed and advocated
within the British Cabinet. in the
British financial press. The last
strongholds of capitalism lose all
stability. And the final British
Note in effect threatens repudia-
ton, if a satisfactory new settle
ment is not reached.
NEW SETTLEMENT
is LIKELY
A new settlement, If not of can
collation., then of revision, is likely
to be reached. American finance
capital, no less than British, is anx-
ious at all costs to avoid the ex-
plosive issue of Reputation. Fur
ther, there is visible calculation
of interests involved for American
finance-capital. The total value of
the war-debts settlements is calcu-
lated at GA billion dollars; but the
total value Of American invest
ments of capital throughout the
world at 1915 billion dollars, and
in Europe alone at five billion dol
lars Economist War-Debts Supple
rl1ent IL. IL. 32). LII the conditions