DEBT MORATORIUM

Evening Star, Issue 21747, 15 June 1934, Page 9

DEBT MORATORIUM

GERMANY'S FOREIGN .LOANS ALLIED GOVERNMENTS BLAMED FOR POSITION Press Association—By Telegraph—Copyright. LONDON, Juno 14. The Berlin correspondent of the ‘Daily Express’ says; “A complete moratorium on all German foreign loans will be declared on July 1. The president of the Reichsbank (Dr Schacht)

will make the revelation at a secret meeting of the Central Committee of the Reichsbank to-day. The moratorium will be irrespective of warnings by the British and French Governments, and Dr Schacht will make no excuses but will simply say that Germany has no money. Ho will accuse the Allied Governments of a breach of faith in not assisting German trade in order that she should have a balance of gold and foreign currencies with which to pay, adding: ‘As they have not fulfilled their promise the fault is the Allied Governments, not ours.’ “ A particularly serious situation will bo created by the moratorium in the so-called potash loan, which is guaranteed by the German potash industry.”

• OPERATIVE FOR SIX MONTHS BERLIN, June 14. The Ileichsbank has declared a full moratorium, which includes the Dawes and Young loans, for six months from July 1. REACTION ON STOCK EXCHANGE (British Official Wireless.) RUGBY, June 14. (Received June 15, at noon.) Following the German announcement of a six months’ moratorium on all foreign loans, including the Dawes and Young payments, German bonds fluctuated freely on the London Stock Exchange, and showed sharp falls at the close. STATEMENT BY FINANCE MINISTER BERLIN, June 14. (Received Juno 15, at noon.) The Minister of Finance, in a statement, said that interest and amortisation services on all state loans were at present suspended. The Government approve! of the Reichsbank’s action so far as the decision entailed Government obligation, thereby showing that it had no intention of changing the interest on agreements onesidedly. The Ileichsbank offers coupon holders preferring cash to funding bonds to purchase coupons at 40 per cent, of their face value at any time during six months after the date on which the respective coupons are due.