GOLD STANDARD

Hokitika Guardian, 28 April 1932, Page 8

GOLD STANDARD

ABANDONED BY tJREEOE

CRISIS IN SOUTH EAST EUROIM-

LONDON. April 26. The news that Creece has abandonee the gold standard does not come as a surprise for the condition of Hie finances of'that country and others in -orih-ea stern Europe l has caused anxiety among the Western uat > ■ for some mouths past. Bears t' Creece would follow the lead give Hungary and default were incrmis when the Creek Premier (M. Wim zelos) last week announced t:: Creece was approaching default ai could not meet her pavmenls on V--1 unless a loan were forthcoming.

predicament is due -lo the collapse ml prices of primary products. Although urgent economies were enlorccd. flu' balancing of her Budget 'is not possible, and British investors who have larg'sinus of money locked up m Creece arc likely to he heavy losers. (A .fruitless .conference of Bfln-h French, German ami Italian Minister-

was held recently in laindon to consider means of ameliorating the condpinn of European States economically and financially distressed. These 'u- ,.| olpd Austria, Hungary, Romani". Jugoslavia and Czechoslovakia. It failed to reach an agreement. largely as a result of German and ftiian objections to the customs and trade proposals. The conference was adjourned to enable the Government coneerned 1.0 participate, in a further exchange of views.

Meanwhile amid deepening gloom and apparently universal impale -extern Europe is slipping into bankruptcy. The League of Xatmus lCmuic.il has met in private t.n db-ers, th 6 case.s of Austria, Hungary, G'oeci and Bulgaria, hut has not been abb' to help, for no nation lias been able to make Hie loans recommended by Hie League's Financial Commit! Ti e main function of the League ii seems, will be to give a sort ol approval to r. general default. Hungary has already defaulted. Austria : s expected to go off the void .standard and default in various exrernal obligations, unless sh* is able to raise it iicav loan to pny int.cn i-*>t ** * old ones.

Bulgaria is preparing to declare a partial moratorium regarding external debt, payments without waiting for Hie League’s approval of it. They are not likely to he long in following Greece’s lead.