The Cabinet's Policy The future matters now a great deal
more than the past, and there is no need to spend much time in defending the Government's policy. But it is as obvious in retro- spect as it was while the events were unfolding that for the past six weeks the Cabinet has taken the only course possible. No formal approach could be made to the United States till after the Presidential election at the beginning of November, for it would have been fatal to make debts a campaign issue. On the other hand, once the election was over the matter became urgent, for the payment was due on December 15th and Congress, which alone could authorize postponement, was assembling on the 5th. The fact that a beaten and impotent administration is kept in office in America for four months is not our fault and we had to make the best of it. Finally, if we had defaulted now we should have been facing the new Roosevelt administration, of which something may still be hoped, with precisely the situation that would have made a friendly settlement impossible. As things are an atmosphere favourable to negotiation has been created. America thinks of this country as it is to be desired that she should think. What is most to he hoped is that the public mind in the United States will yet somehow grip the realities of the situation. Time, unfortunately, is short. The next debt payment falls due in June, and there is little point in negotiating with anyone except Mr. Roosevelt and his Ministers, who do not take officetill March. Mr. Hoover and Mr. Stimson are completely powerless, and it is well to recognize it. That the June instalment cannot be paid is certain, but it is very desirable that a technical default, avoided now, shall not be forced on us then.
