KREUGER’S END

Hokitika Guardian, 15 March 1932, Page 5

KREUGER’S END

PANIC FORESTALLED LOANS BY HIS COMPANIES. (United Press Association—By Electric Telegraph.—Copyright.) STOCKHOLM, March 13. The Government hurriedly convened Parliament to pass a Moratorium Bill for private concerns, with special application to Kreuger. Kreuger’s death" may be followed by chums on Kreuger undertakings, states the Prime Minister.

The Inspector of Swedish hanks, M. Ekman, points out that the Moratorium Bill is not clue to Government fears Of s olvency, I'he banks have no cause for alarm, and, are opening as usual on Monday.

M. iTeckseher, a prominent economist, declares that t.'ie suicide does not mean the writing of the obituary of the Kreuger concerns. M. Littorin, the Assistant-Managing Director of the Swedish Match Company, who was one of Ki'fcUgefV oldest friends, says lie believes the deceased only decided to take Ills life ft few ftliniitSs before he fired the gun. He left a scribbled note saying that he had "tried, but could not see the use of going on.

Ivan krnuger's suicide hue caused a sensation in two continents, A prominent Parisian businessman says it is a real tragedy. Suicide, he says, was unnecessary. Kreuger could have pulled through 1 . His innumerable undertakings were lindividually sound, but the impossibility of his remitting monies 'from certain countries had hampered his companies’ transactions, while he was in ill healtn, wb:ch sapped his courage.

It is believed that Kreuger met a number of big business men at Paris, and that he reached the conviction that a French financial group were trying to wreck his companies. Two years ago the Kreuger concerns were valued at one hundred and sixty million pounds sterling, whereas on Saturday the Stock 'Exchange. valuation of them was forty-five million pounds. The loan s of the Kreuger companies t.o c/ountries i'ncluded seven millions to Hungary, four and a-hal'f millions to Jugo-Slavia, six millions to Koumania, and two millions to Turkey.

The “Financial News” says ; Had the death of Ivan Kreuger occurred three months ago, it would have had a catastrophic effect, and would probably have caused the suspension oi the gold standard in several countries, but in the meantime the international monetary situation has become less unstable. ■SWEDISH PRIDE HURT* failure to obtain loan. STOCKHOLM, March 14. After fifteen ' ininuteg’ debate, both Houses of the Swedish Rikadag passed a Bill authorising the Government to grant individuals or companies a short moratorium on debts. The Kreuger Told Company have asked a respite till the end of March, which the Government will give. The depreciation in the market value of the Kreuger Companies' shares since L 930 has exceeded one hundred millionsterling.

A correspondent says that had 'the late Ivan Kreuger admitted his difficulties, his countrymen would have jumped to his assistance and averted his suicide, which is regarded as a severe blow to Swedish national pride. He had vainlj tried to borrow six and a-half millions •sterling which was urgently needed i'oi a repayment on April Ist to the Scandiinaviska Kredifaktiebolshet, as otherwise he would not have been allowed to declare a dividend. DENIAL OF RUMOUR. (Received this Bay at 9.2fi a.m) PARIS, March 14. Banks which were pressing Kreuger denied that it was known that he failed to obtain in America six and a-half million sterling due to Swedish banks on April 4th., the failure to pay which, involved their with-holding sums to meet dividends. Financiers in Berlin fear world wide disaster but London’s only precaution is the marking down of all internationals.