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Hokitika Guardian, 23 July 1931, Page 4

Ttik financial condition of the old world is well illustrated by the crisis arising out of the position of Germany. At the eleventh hour the United States moved, in the direction jof sue-, coui'ing Germany but"“"\vitlf France seeking to make her position" witlliu Germany more secure, the situation was overstrained;, and the some time enemy was on the point of absolute collapse. Just what would transpire following the financial collapse' of Germany would be an interesting prospect to try anj visualise. Naturally there would be a general financial disaster within the country, but the outside creditors woud find it difficult to collect their 'claims. Probably the first effect would he a huge writing down, or cancellation of the international debts. If that were so, the recovery of Europe might come to pass t!ie quicker. This of course is a far fetched view of the possibilities, for the Powers are all seeking to prop up Germany in order that the situation might not be lost. The crisis Europe now faces might have been avoided, had Great Britain’s proposals for the cancellation of war debts been favourably received a few years ago. It is manifest now that therein was the germ of an idea of great possibilities. But the opportunity was lost, and the whole financial problem of the European powers grows in magnitude and difficulty year.by year. Steps will be taken to save and patch up the general situation, hut as Sir Basil. Blackett has said;, “pothing short of drastic action and the united co-operation of all central hanks and Governments can restore that confidence on which alone peaceful progress of the twentieth century is dependent.” This cryptic utterance does not definitely suggest cancellation of debts, but it is possible such “a drastic action” was in the banker’s mind.