U.S.A. DEBTS

Hokitika Guardian, 22 June 1931, Page 6

U.S.A. DEBTS

INTEREST DUE. IN U.S.A. TO BE SUSPENDED. AMERICA COMING- TO HEEL. I [United Press Association—By Electric Telegraph—Copyright. J NEW YORK, June 19. “The Times’s” Washington correspondent says : Following on President Hoover’s latest Reparations statement, is is believed that, the President has taken the initiative in an effort to aid Germany. It is felt that his doing so, would necessitate the contemplation of reparations concessions as between Germany and the Allies, which, in turn, would require decisions concerning the debt payments between the Allies themselves. Therefore, although President Hoover gave no inkling of what measures he has taken to aid the world situation, it is understood that the plan under consideration contemplates an authority from the United States Congress which will give the Allied debtors the right to withhold their interest payments during the period of the European economic and financial uncertainty. HOOVER’S ACTIVITIES. WASHINGTON, June XU. President Hoover contemplates issuing next week a comprehensive statement concerning his conferences with (Republican and Democratic leaders over the (German Reparations problem. Meantime White House has issued a statement that the President continued holding conferences throughout Saturday, and that further conferences would follow. THE OFFER STATED. 250 MILLION DOLLARS. TO BE FOREGONE FOR A YEAR. WASHINGTON, June 20. President Hoover this (Saturday) night announced an offer by America to the world for one year's suspension of the inter-govermenta.l debts.

The President said : “The American Government proposes the postponement during one year of all the payments of the inter-governmental debts, the reparations and reliefs debts, both of the principal and of the interest, not including the obligations of Governments that are held by private parties.” This announcement was given after •the receipt of informal reports from European Governments. There is confidence here that Great Britain, France and the other Allies will join in the move and will forego to’ collect on • the reparations from Germany. Unless that occurs, the Congressional approval of the pvoposal is not expected*’ (This step, to aid in avoiding a European financial crisis, has been taken only after President Hoover has conferred with all of the Congressional leaders within his reach. If the offer is accepted, America will forego the collection,' until next year, of more than 245,000,000 dollars in war debts, and. the Allies will not collect 425,000,000 dollars of the reparations owed them by Germany in coming year. President Hoover said; “The purpose of .this action is to give the forthcoming year to the economic recovery of the world, and to help the free recuperative forces already in motion in. the United States from retarding the influences abroad.” Congress does not meet until December,' but none of the war payments are due until December 15th.

ARMAMENT MENACE. CAUSE OF THE DEPRESSION. WASHINGTON, June President Hoover with his . announcement of a war debts “holiday” expresses hope that by her “desire to assist” America will have contributed to the success of the forthcoming Disarmament Conference. The President reiterated that “the burden of comprehensive armaments has contributed to bring about this depression.” NEWS IN LONDON. THE OFFER FORESEEN LONDON, June 21.** The news of President Hoover’s offer as to a suspension of war debt and reparations payments has reached London at a most awkward hour. The early editions of the Sunday papershave already been printed and circuV. lated, and late special editions had hurriedly to be prepared. Naturally there is no comment. The news has come not altogether as a surprise. As a matter of fact, this subject was given prominence in the | early editions. Several of the papers had contained predictions of the suspension of the debt payments lor a year or more as an alternative to Germany’s declaration of a moratorium, which could not have been much longer delayed. FRANCE’S ATTITUDE. REMISSION. WELCOMED. PARTS, June 21. An official of the French Ministry of Finance told the Brit 1 "* 11 -United Press; “Any sacrifice that the United States makes in the war debts would be favourably accepted by France, and a. corresponding amount would be deducted from Germany’s conditional payments

under the Young Plan. France will not, however, agree to re-open the discussion in, regard to the unconditional’ payments of Germany, which Germain must carry ou.t.” Other official quarters state that •France would naturally be pleased at any reduction of- Europe’s war debt burden. B R ITISH REIPR ESEN TAT I ONS. (Received this day at 9 a.m.) NEW YORK, June 21. The “Times” Washington correspondent states Lindsay to-day conferred with the Treasury Department on the “general economic situation and international problems wherewith wc are confronted.” An understanding prevailed that the s'ubject was the British debt to United States. Several. factors have contifibuted to the suggestion that the interest rate of Britain’s indebtedness should be lowered, principally one thing, that United States is paying lower interests on its bond flotations recently and it is expected to be as low as three per centum shortly. Comment to-night on Mr Hoover’s announcement are interpreted by his references to Geneva Conference as the President’s way of serving notice upon European Governments that if they desired a modification of their war debt arrangement with United States, the blest course of procedure would he to reduce heavy armaments expenditure, and thus create a sympathetic and reciprocal feeling among the American people. STOCK MARKET IMPROVES. NEW YORK, June 21. New York stock market responded sensationally to the reparations developments. The largest gains of the last eighteen months are being recorded, the principal issues gaining one to sixteen points. 1,500,000 shares were traded in United States steel, American car and important railways. All participated in the advance. German bonds advanced up to 5J points. INTEREST DEBTS.' Lloyd George’s comment. (Received this day at 9.25 a.m) LONDON, June 21. Mr Lloyd George said: —-“.I am delighted to hear of President Hoover’s move, which will naturally contribute to the relief of the world’s economic strain. Had my proposal to America and France in 1922, to cancel international debts, have been implemented we would not had the present slump. PROPOSAL WELCOMED. X LONDON, June 21. Sir Hugo Hirst welcomes the proposal and hopes it is acceptable to France. He thinks it will benefit trade. h COMMENT ON HOOVER’S PROPOSAL. (Received this day at 10 a.m.) SYDNEY, June, 22. Commenting on' Mr Hoover’s plan, Mr Lyons said it would he of great help this year, tor this year will he our worst, as it is the start ol our period of financial restoration. •Mr Lang said what Hoover proposes is the only way out of the appalling condition into which the whole civilised world has fallen. . MR HOOVER’S VIEWS. VANCOUVER, June 21. (Mr Hoover disposed of the theory that he favours cancellation of war debts, by saying that de“bTs due to United States •were settled on a basis not contingent on the payment of German reparations, and that there has been no change in their status. Reparation was wholly a •European problem with which we had no relation. He made it clear he might favour a reduction of debts if he became convinced that, the debtors lack the capacity to pay them in full. DAILY MAIL EDITORIAL. LONDON, June 21. The “Daily Mail” in a leader says: President Hoover’s is the greatest gesture of generousitv and will help to retore confidence and hope in shaken Europe,, but Britons must beware of extravagent hopes. The proposal would not reduce taxes here, because if Britain ceases the payment of her principal interest to the United States, Germany similarly ceases to pay ‘Britain. Nevertheless President Hoover’s message will be welcomed everywhere.