PAYMENT IN SILVER

Hawera Star, Volume LIII, 16 June 1933, Page 5

PAYMENT IN SILVER

Part of War Debt Instalment

SUM OF £2,000,000 TO U.S.A.

Good Augury For Conference

BRITISH CHANCELLOR’S VIEW.

APPRECIATION IN COMMONS.

(United Press Association —ay Electric Telegraph Copyright.)

LONDON, June 14.

“We decided to make it clear that the suspension of the June instalment did not and was not intended to prejudice the ultimate settlement,’’ said the Chancellor of the Exchequer, Mr Neville Chamberlain, in concluding his statement in the House of Commons on the war debt to America. “We proposed to make a payment of £2,000,000 in silver, which the United States informed us she would accept at 50 cents a fine ounce. We have acquired this silver from the Government of India.

“I am sure Mi' Roosevelt’s statement appreciating the spirit in which our proposal was made will give general satisfaction. This settlement of a difficult and delicate problem is a good augury for the success of the . World Conference and may prove the first step towards a complete final settlement of the whole question of war debts. ’ 5

Sir Stafford Oripps on behalf of the Labour Party, congratulated Mr Roosevelt on the realism with yliich he ]jad faced the situation. He also congratulated the British Government on the satisfactory agreement. Sir Herbert Samuel said the Liberals joined in the congratulations It would have been lamentable if Britain had been forced into a position of repudiation. Sir Robert Horne said the settlement represented a considerable alleviation of the country’s burden. He was sure Mr Chamberlain had acquired the silver at below the prime America was allowing. Mr. Winston Churchill expressed admiration for Mr Roosevelt’s wise and generous words, which would give a message of hope to the whole world. Mr Maxton (Labour) declared that things must he put in the proper prospective. ‘We have simply induced a creditor to take something on account and obtained six months’ time in which the debt can be fully discussed,” he said. He hoped a real settlement would be found in that neriod.

“Nothing could be more satisfactory than the Anglo-American agreement.” says “The Times” in a leader. “Mr Roosevelt deserves world-wide credit for his vision, courage and co-operation despite domestic difficulties, enabling the negotiation of a final .settlement in an atmosphere of goodwill and mutual accommodation.”

Tho “Daily Mail” says Mr. Roosevelt accepted the proffered payment in a generous and statesmanlike spirit. “Congress itself,can hardly dispute the ruling of the United States Treasury in 1925. which declared it was axiomatic that no nation he required to pay another Government sums in excess of its capacity to pay,” the paper adds.

Other Press comment expresses the opinion that the way is now open for a substantial trade recovery. City business circles received the news of the debt settlement with a-elief after a day of suspense. It is likely that the announcement will have a splendid reflex in the markets to-day.

DEFAULT BY FIVE DEBTORS,

BELGIUM AND POLAND.

FINLAND PAYING IN FULL,

LONDON, June 15

The Belgian Government has informed America- that it will be unable to pay the debt instalment, says t_he “Daily Mail.” Poland is also defaulting. Italy, Rumania and Czechoslovakia are making partial payments and Finland is paying in full. - The “Sun” Service says possibly Australia’s future war debt, payments to Britain will he affected by the result of Mr Roosevelt’s decision, because it is unlikely if Australia has to resume payments that Britain will ask a higher ratio than she is ‘ paying America —ten per cent. The “Daily Mail” says France v\ ill not follow Britain’s example of a token payment to America as the Chamber’n resolution in December refusing payment pending; a debt conference constitution ally prevents payment in any form. “The Times’’ states that Latvia and Esthonia will not pay America.

FRANCE NOT GOING TO PAY

Received 11.50 a.m. to-day

PARIS, June 15. France is notifying Washington that she is not paying the war debt instalment.

OPINIONS AT WASHINGTON. ,

SENATOR SUGGESTS DEFAULT.

DENIED BY PRESIDENT,

WASHINGTON, Jupe 14. President Roosevelt has pointed out that the debt payment in no way prejudices either GovernriTent in the subsequent discussions. He also outlined the history of his- negotiations with Britain and averred that only Congress had the right to alter the amount or method of payment of tire debt. He reiterated that the American intention was not to discuss debts at the London Conference.

“I have no personal hesitation in saying that I do not characterise the resultant situation as default,” Mr Roosevelt added. During a discussion in the Senate Mr Reed declared that Britain had defaulted. There was no .shadow of a suggestion of her inability to pay. Britain did not want to pay. Senator Glass, suoporting the President, declared: “Thousands of hoys from the debtor nations were killed in battle in the cause we professed to be our cause. Not onU r that. Unit for three years afterwards we made fabulous fortunes out of the very money we loaned these nations, requiring them to spend every dollar loaned in this country and charging them extortionate prices for our products.”