Sound Finance The repayment of the last instalment of the
total sum of £130,000,000 borrowed a year ago from the United States and France is evidence to the world of the sound- ness of British finances, particularly since a right of renewal existed but was not invoked. The decision not to make the application, which the Debt Agreement permits, for postponement of the instalment of capital repayment due to America in December (the interest pzivment is not postponeable) is further calculated to impress America favourably. The moment to begin formal conversations with the United States has clearly not come yet, but it need not necessarily be postponed till the opening of the new Presidential term in March. If Mr. Hoover is re-elected in November his hands will be free at once. If on the other hand Mr. Roosevelt is the victor he might quite well think it proper to collabor- ate with his outgoing predecessor on the debt question as a non-party issue. Mr. Mellon and Senator Reed may or may not have discussed debts when they visited Mr. MacDonald on Tuesday, but that the subject has been unofficially but satisfactorily explored is pretty - certain. The formation, in New York, of a non-party business men's committee on inter-governmental debts (not War debts only) is a promising sign.
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