IN THE COMMONS

Hokitika Guardian, 26 November 1932, Page 5

IN THE COMMONS

DEBATE IN REPLY

REFERENCES TO WAR DEBTS.

(United Press Association—By Electric Telegraph—Copyright.! LONDON, November 24: In the House of Commons, Sir R. Horne, in the debate on the Address-in-Iteply, referring to the debt payment to the United States, due on December 14, said: “I have no doubt whatever, that we ought to pay. lor Britain to default, after her extraordinary rccovey of the past year, and the prestige she has resumed in the economic world, would be a disastei;, not only for us, but the whole ciedit structure of the globe. How should vv e pay? 1 have no doubt whatever that we should by shipping bar gold.”

Sir It. S. Horne added . There are at present £140,000,000 of gold in the Bank of England. We have lived long enough off the gold standard to know that we need not be frightened at the absence of some of this gold. In ordinary circumstances this loss of gold would lead to a reduction in monetary circulation. This must not be allowed, as the great deflation following shipping gold would be harmful to every interest. As Mr Chamberlain must shortly deal with the amount of fiduciary issue, I hope steps will 7)e taken to see that the monetary circulation is in nowise lessened. The way to deal with this gold payment as a budgetary matter is to suspend the sinking fund to the extent of payment. It would thus make no difference to the budget figures, and the sinking fund, specially designed for payment of debt. Six months ago, objection might have been raised t 0 such suspension, on the ground that it would defer the conversation scheme. This difficulty i s now cleared away. The next difficulty would be the fall in the pound. It would cause me no anxiety, if the pound fell further, as not yet has it fallen as far as prices. If it fell to three dollars, even below, it would still be a convenient medium of exchange. We. should face the. position, relying less on imports and more on our own manufactures. While most purchases from the outside world could be made on a sterling basis, the real trouble of the American demand was the check to the steps towards a revival of prosperity, which all nations should taka co-operatively. We are in a strong position as the centre of the great sterling area, representing half the world’s trade. We are leading the ship of convoy,, and I hope we have courage enough to take action. Leadership demands that we help the world out of the present troubles.

FRANCE'S DILEMMA.

ITALY’S PAYMENT TO BRITAIN.

LONDON, November 24

City and diplomatic circles in London arc agreed that Mr Hoover’s note was not altogether unsatsfactory, as is leaves the door open for international discussion.

A new note containing facts justifying the Brtish request for a postponement is already being prepared. It will be despatched after submission to Cabinet. Paris messages suggest that there should be an exchange of views between the British and French Governments before the reply is sent to W ashing ton. Press comments stress the tremendous responsibility resting on the United States, if it reverses the Lausanne policy, and thus deal a smashing blow at world recovery. The French public' are' agitated whether Britain will demand the current instalment of 12£ millions sterling due under the Caillaux-Churchill agreement, which was provisionally wiped out bj th Lausanne agreement. Franco’s position is complicated by the fact that M. Herriot cannot order payment to the United States in December without the approval of _ the Deputies and Senate, which are likely to be insistent that it must not be paid. On the other hand, the willingness of Italy to pay here a quarter of a million due in December, makes M. Herriot reluctant to allow France to default.

GERMAN ATTITUDE.

LONDON, November 24. German official opinion shares the British view.

REVISION INEVITABLE. TORONTO, November 24

“The United States’ insistence on payment can only retard for a lougei period, world recovery,” declared Thomas White. “The debts must eventually revise themselves, as the harder is too heavy to be borne by international trade.