The Problem of Debts.
The view that the debt problem was subsidiary to that of raising prices was forcibly expressed by Sir Henry Strakosch, who refused to contemplate a scaling down of debts, which would destroy and not recreate credit. M. Bonnet likewise insisted that there could be no solution of the probleni of indebtedness at the expense of credit. But it was not only the debtor countries who pleaded that a rise of prices on such a scale as may be hoped for would be inadequate by itself to enable debtors to meet their obligations. Mr. Couzens expressea the view of the United States that the burden of debt must be simultaneously lightened, mentioning that his Government had set up agencies to bring about the composition of private internal debts ; similar measures have, of course, been taken in other countries, notably certain Dominions, and they have exposed two critical problems, first the need for associating a reduction in the capital debt with that in the current charges, and secondly the ' importance of retaining the individual responsibility of the debtors. These and similar problems of principle will have to be faced by the Conference alongside those of machinery for the composition of debts. Meanwhile, the other line of attack, the raising of prices, remains open for advance. Technical committees have gone some way in the past week towards filling out with practical detail the various proposals for monetary measures to raise prices, including the economy of gold. If stabiliza- tion is eventually achieved, it will be on a new and very much improved gold standard.
