The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-05-11
DEBT PROBLEM
IS BIG PERIL TO
LONDON FARLEY
Wide Divergences Develop
ing in Views of United
States and Europeans.
BY WILLIAM PHILIP SIMMS
scripps- Howard Foreign Ed.tor

WASHINGTON, May 11-Wide
Emergencies between the views OF
the United States and Europe on
war debts, threaten to deadlock the
world economic conference from the
start.
Both Great Britain and France
have indicated to the United States
that nothing definite can be accom-
plished at the London parley, be-
ginning June IL, unless something
equally definite is done about the
debts.
Monetary sterilization and re-
moval Of existing restrictions, Brit
ain and France insist, absolutely are
vital to world trade recovery-a
principal aim of the United States
yet the British position is that
debt revision is essential to any set
tlement of these problems.
This attitude is constructed here
as clear indication that unless
President Roosevelt and congress,
between them, in some way can
satisfy Europe on the debt issue,
the London meeting may fail of it's
purpose.
Expect Some Revision
Neither the British nor the
French, it is understood, expects
complete revision of Europes SILL
000,000,000 war debt to this country
between now and June II, it is said,
they will insist upon two things be-
fore any definite agreements are
signed.
l. They desire an understanding
with regard to the S75,950,000 in
stallment which Britain is scheduled
to pay the United States on June
Is, and the $40, 100000 which France
is supposed to pay on the same date
2. They want at least a gentle
mans agreement that whatever is
done at London will be followed i'm
mediately by revision Of the exist
ing settlements. They may stipu-
late, under certain contingencies,
that the more important results at
London shall become effective only
after such revision.
Currency Problem Studied
Sterilization of the principal cur
rencieS Of the world, the first of
the major tasks at London, is as
Sumed to involve the return to gold
not only of the United States, but
Great Britain, and on this point the
British official position is categori-
cal.
l. Britain, Sir Neville Chamber
lain, chancellor Of the exchequer,
declared, will not return to gold
unless she is certain she can stay
there
2. She can not be certain of stay
ing there until she knows definitely
how much of a drain on her gold
reserves the war debt will be.
3. She can not be definite on that
score unless and until there is a
final settlement.
Thus the British-and with them
the French and the other debtor
nations which follow the Franco
British enthusiastically tie debt
revision and world economic re-
covery together, whereas the Off
cially stated American position is
the exact opposite.
Silver Proposal no Cure
With regard to the June Is pay
ments, neither British nor French
are said to look with enthusiasm
upon the American proposal to &C
cept silver.
The French would have to buy
silver in the open market, and
their first move to do so, they claim,
would cause the price to shoot up
at once to the stipulated so cents
an ounce. So, they assert, they would
gain nothing by the move.
Britain, with access to the Indian
treasury, where 200,000,000 ounces
are available, would have to drain
it of the last ounce to pay the June
installment. At 81 cents an ounce,
approximately the present price, the
Indian government silver would
bring $74,000,0O0.