EUROPEAN DEFAULTS

Hokitika Guardian, 21 September 1932, Page 5

EUROPEAN DEFAULTS

TO RECONSTRUCTION LOANS. URGE TO RESTORE CONFIDENCE (United Press Association —-By Electric Telegraph—Copyright.) LONDON, September 20. After all of the bother a year ago, as to the possibility of an Australian default, it is refreshing to find tha-t the influential London Leaguei loans committee, of which Sir Austin Chamberlain is chairman, has sent a memorial to th.e Cabinet, urging steps to restore confidence in the League of Nations European 4 reconstruction loans, in which Greece, Hungary and Austria have defaulted, and in which Bulgaria did less than it promised. A similar memorial has been sent to .the League tif Nations Councils \ i The memorials state that British investors have subscribed • about fbrty mlliarm out of eighty-three millions in the faith that special security attached thereto, and in the belief that both the League council anfl the British Government would exercise. special watchfulness in this connection. If the defaults are not -remedied, it states, the whole machinery of European constructive and future international investment would suffer a severe and lasting .shock. “The Times” in an editorial, says: “It is essential that the Governments of both the creditor and debtor powers shall agree to recognise the special position of these loans. Only then can there be considered a temporary or orderly scaling down of obligations. The League council must take immediate steps to rehabilitate its financial reputatioh by dealing with these defaults in . a constructive manner.