LONDON CONFERENCE

Hokitika Guardian, 23 July 1931, Page 6

LONDON CONFERENCE

CREDITS FOR GERMANY. AMERICAN PROPOSAL. (British Official Wireless.) WASHINGTON, July 21. The proposal by the United States Government that the bankers of the world should maintain their present volume of credits to Germany has been laid before the interested Powers at ■London.

v The Acting Secretary of State (Mr ■Castle) made known to-day the details of the formal suggestions approved by Mr Hoover for relieving Germany. At the outset, tht> United States’ proposals placed entirely in Europe’s hands a solution of their political problems, the U.S..A. proposals confining themselves to banking operations. -It was suggested that the maintenance of the present levels of credits be implemented with continued measures by Germany to stem the internal tide within that country. It proposed the establishment of a committee of the Bank of International Settlements, or through other means, to secure co-operation in consulting world banking interests for a renewal of short-term credits, and cooperation in an enquiry to' determine Germany’s further economic needs, and the study, for conversion within six or eight months, of part of the shortterm credits into long-term credits. Mr Castle estimated the total .of short term credits at one thousand two hundred million dollars, half of which is held by the United States banks.

■NO CREDIT WITHDRAWALS

RUGBY, July 21

The morning’s sitting of the Seven Powers’ Conference lasted over two and a half hours, and consisted of a discussion of the general aspects of the situation.

There was agreement that the most urgent part of the problem was to devise methods of international financial co-operation, which could be promptly applied to restore confidence in Germany’s economic stability. It was agreed that the first step must be to ensure no further credits would be withdrawn from Germany. Mr iStimson, on this point, emphasised his firm belief that American banks would continue to co-operate in maintaining their credits with Germany. He hoped that the banks in other countries would adopt a similar sane and helpful attitude.

A communique issued at nine o’clock to-night states : “A committee of Finance Ministers was appointed to meet at the Commons, under the chairmanship of Mr MacDonald, with Dr Bruening and M. Francqui / represent* ing Germany and Belgium respectively. The results of the Committee’s deliberations will be communicated at the f’lenary, to-morrow morning.

GOLD MOVEMENT’

FROM LONDON TO CONTINENT. LONDON, July 22. The decisions o'f the .Seven Powers International Conference are intimately connected with the gold position; including the matter of purchase on open gold market. France and Holland took £3,500,000 worth of gold from London yesterday. The Bank 'of England has received 363,000 sovereigns from the ‘Australian banks. The nett outgoing of gold from lamdon since July 13th, totals £13,879,000. The financial editor ,of the ‘'Daily iTelegraph” emphasises that. Ithe City is not perturbed at this outgo of gold, as the gold stocks of the Bank of England still total one hundred and fifty million, which is considerably higher than the gold stocks were m January.