BRITAIN LEADS

Hokitika Guardian, 22 April 1932, Page 5

BRITAIN LEADS

WORLD PROSPERITY

PROFESSOR KEYNES’ REMARKS

t United Press Association. —By Electric

Telegraph.—Copyright.)

NEW YORK, April 20.

Professor John, Maynard Keynes of England, in an article in the “Atlantic Monthly”, declares: “Britain’s abandonment of the gold standard is ! a starting point for world economic ret o wry. Britain today is decidedly the most prosperous country in L.e world.” He says that .orces ie eased by the abandonment of gold will in time undermine and destroy the creditor position of France a.nd the United States. A policy of inflation, lie considers, may prevent the almost complete collapse of the financial structure of modern capitalism

Professor Keynes recommends a similar policy for the- United States, saying: “Jll tile United States it is most inconceivable what rubbish « public man has to utter to-day, if he is to keep 1 expectable, blit the best bankers see a need for inflation. The United States will have- to wait for a stimulus for an economic recovery from outside, wlple such a recovery will coino first of all to Britain and the group of oversea countries which look to her for financial leadership,“

THE AMERICAN VIEW.

BRITAIN LESS ABLE TO PAY,

NEW YORK. April 21

Tho “Now York Times’’ Washington correspondent states: The semiofficial comment to-dav on the British Budget took the line that Air Chamberlain's outline should not be accepted as a direct evidence that the payments due to the United States in the next fiscal year will be withheld.

It is stated that any discussion would be premature until after the Lausanne Conference, especially since additions to the Budget were contemplated to handle Britain’s financial obligations not covered in the drafts submitted yesterday. In a responsible quarter the opinion was given to-day that Britain was in no position to pay the 171,500,000 dollars due to the United States in the- fiscal year of ,1933. but that France and Italy are in a much stronger financial position, and could meet their obligations without any serious strain on their resources. It is believed that Britain, a Her the Lausanne Conference will either make additions to the Budget to 'meet the full payments due to the United States or will seek a re-adjustment of lur debt if the Reparations that she receives are curtailed or eliminated. It is learned that four per cent, interest has been fixed on the payments deferred under the Hoover Moratorium,

AMERICA GIVES NOTICE. TO DEBTOR GOVERNMENTS. NEW YORK, April 20. It has been disclosed that the State Department has sent a notice to the fourteen debtor Governments to the effect that they will he expected to sign formal legal obligations to repay over a ten year period the 246 millions dollars postponed in the Hoover moratorium.