NEWS OF THE WEEK
THE American reply to the British Note on debts throws out a new and unexpected suggestion which may contain practical poSsibilities. Having pointed out that Britain need not be considered in default if she pays this Month no more than the amount due for the half-year, and animadverted somewhat severely upon the suspension Of payments and upon the British view of the relation between receipts from Europe and payments to America, the Note goes on to invite further British proposals and to suggest informal discussion. Acknowledging the difficulties of transferring large sums of money across the exchanges, it-points out that no proposals have ever been made looking towards payments in kind, and that suggestions of this character would be carefully con- sidered. This new avenue deserves to be fully explored, though President Roosevelt has already rather backed away from it. The problem of making large annual pay- ments to America would assume quite a different character if this country were enabled to make them in the form of goods manufactured in this country. Indeed it has been one of our principal complaints that America by her tariffs shut out the goods which are in the long run the only means by which large payments can be made.
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