LORD READING

Hokitika Guardian, 25 November 1932, Page 5

LORD READING

THE GOLD SHORTAGE

BRITISH OPINION, \ f \ (Per Press Association Copyright.) RUGBY, November 23. Reference to the war debts situation was made by Lord Reading, who has returned from the United states, in a speech before tho Lnglisn Speaking Union. He said, that Britain’s proposal for the postponinent of tho ; .-iJciiLijii oent payment on December la was as important for America- as tor Britain. \Vlien the agreement was made no one ioresa-w that, 14 years fioni the Armistice, we would be in our present position. Under the Angio.iinciicau uoiit agreement, Britain pai l more than any other country, hhe forewent the gnat portions of the debts due to her from other countries, claiming only that she should receive from-then suffient to enable payment to be made to the United States. The debt could only be paid by gold or goods and services. Gold was scarce, save in localities where it was kept quietly safe by being accumulated in a hole. If payment could not be made in gold, the problem arose of payment by goods and services, and there they were met with manifold difficulties. If they took the value of goods and commodities at the time tho settlement was made, it took a least tw’ice the amount of money. Therefore, the burden was at least twice as great to-day as 'it was then. When the debt was fixed at a certain sum, it was believed that Britain would be receiving reparations, and would be paying America what she received. There was now no question of getting reparations. He •' sked America to remember that Bri-.-ain was receiving no payments at all. lie added that he was confident from what he had seen, read and heard in the States, the feeling was that Britain had a hard deal with the Debt settlements. He believed that the Americans were quite ready to revise the! settlement.

BRITAIN’S PAYMENT.

NEW 7 YORK, November 23

The “Evening Post’A said, to-day, that according to persistent reports in the financial district, New York banking interests, headed by J. P. Morgan and Company, have assured private London bankers that a substantial credit will ba advanced to support sterling, if needed, as the result of payments by the British Treasury of 90,000,000 dollars of war debt, due to the United States ‘on December 15.

WINSTON CHURCHILL

RUGBY, November 23,

Air Winston Churchill, in his first speech in'the House of Commons since hi- **>ent illnesA dealt with the war debt question.

He said he deeply regretted that the question had been largely removed from the high circles of American statesmen, who- understood the world position, and was to a large extent in the hands of obdurate assemblies, newly-elected, whose members had given specific pledges to their constituents, without attempting to anticipate the British Government’s, decision. In face of the torturing problems, he believed they were all agreed that “if we alone, among all the combatants in the Great War, victors or vanquished, are to be condemned, without receiving anything from our debtors, to pay for nearly two generations a vast overseas indemnity, as a punishment for the exertions we made in the war, and as a penalty for our good faith afterwards, that would be r situation which would indeed be ini fierable.”

THE FINAL SAY. RESTS WITH CONGRESS. LONDON, November 24. Regarding the war debts, “The Times” says: ‘‘lt is clear that th.s decisive word rests with the United States Congress, and the outlook is not at present favourable. If America insists on payment on December 15th, it goes almost without saying that payment will be made. Any other course, supposing payment to be humanly possible, would be contrary to British tradition, and would deal a fatal blow to the quaking edifice of international credit. If Great Britain wore to repudiate her obligations, her example would be followed by every debtor country, arid possibly even by private debtors.”

The editorial proceeds to recount tile consequences of the sacrifices entailed if payment must be made affecting the British taxpayers, those of the Empire, and those of America herself, besides the Lausanne Settlement.”