Evening star., 1933-01-25
How Britain Views Debts

BY the Associated Press.
7 EEDS, England, January 25.-Fol-
lowing is the text Of Chancellor
OF the Exchequer Chamberlain's
IL speech last night on the war debt
question: &
We have in the last few days re-
ceived message from the United States
Of America which offers the prospect
of approach In the near future to the
settlement Of one of our most pressing
difficulties.
It would be too much to say that
reparations and war debts have been
the sole cause of the economic crisis.
but there can be little doubt that until
the nightmare of these intergovern-
mental obligations has been laid to rest
we cannot hope that confidence emong
the nations Will be restored or that we
nomic recovery which has been SO long
delayed.
Last June we accomplished at Lau
same provisional settlement Of rep
arations 1t could only besprovlsional
because whatever theories may be en-
tertained about the relation between
reparations and war debts, Germany's
creditors could not be expected finally
to release their claims until they were
assured Of similar treatment as re-
CARDS their own obligations.
No Criticism Of America.
had hoped that we might have
been spared the dilemma in which We
were placed last December when We
had to choose between default upon our
legal obligations and payment which. as
we believed, could only accentuate fur
ther the troubles and difficulties which
beset the world and not the least Amer
lea herself.
I offer no criticism upon the Amer
ican refusal to pro!ong the moratorium
whilst conversations were taking place.
I realize the difficulties Of the American
Government and. remembering how long
it took to persuade the European ma
tions of the evil results of reparations,
I can we'll understand how different Is
the aspect which the subject of war
debts presents to the farmer of the
Middle West from that which appears
to us.
But there are certain fundamental
truths which will out even though they
may lie concealed for time. In the
long run all payments to a foreign
country must take the form of sending
goods or of rendering services. 1t may
well be that this truth has been hidden
from the American farmer by trans
actions which he has perhaps not OBJ
served.
During the 10 years, 1922 to 1881, the
United States Of America received from
foreign countries f40O, 200 900 Isl ,340,-
10000 currently in war debts. II .00o,-
900 900 ($3, $50 900 900 currently in net
}y,fa on cNpopoarc}al 1OanS ond 81 =
200 0OO, 900 ($4,020, 600, ,000) for the sur
plus of American goods sold abroad over
foreign goods sold to her. That makes
a total OF e., 900 .000, 900 tS8,7l0 ,000, ,000l
in receipts. How did foreigners pay
that vast sum?
Source Of Payments.
A billion five hundred million sterling
($5,O25, 900 ,000) came from the expendi-
ture by American tourists in European
countries and remittances from immi-
grants living in America to their Euro
pean relatives. Another fl00.000,000
(s335, ,OOO,0O0) came by shipments OF
gold, making 81 SOC. .000,00 s5,360 900,
O00) altogether.
Where did the remaining $1,000, ,000, :
900 t$3,350,000, ,000) come from? 1t
came from loans made by America to
the rest of the world and it was that
FL 600, 100000 of loans and that alone
which made possible the payment OF
f400 900 900 of war debts.
But at the present time American
tourists expenditure has dwindled to a
very low figure; so have remittances
from immigrants in America. She has
already got more gold than she knows
what to do with and she has stopped
lending money. Therefore If these war
debts payments we're to be resumed they
could not be made by loans or by fur
ther shipments Of gold.
Effective means Of payment would
have to be found and they could only
be found by increasing sales Of foreign
goods to America or. what would come
to the same thing, by diminishing pur-
chases from America.
Increased sales might be effected by
drastic reduction of the American
tariff or, in the case of countries on
the gold standard, by depreciation OF
their currencies in terms of gold.
Decreased purchases could be insured
either by depreciative currency or by
increasing the tariff against America
Now, in pointing out what would be
the effect Of resuming war debt pay
ments, I am not using threats. II you