BRITISH DEBT NOTE

Hokitika Guardian, 30 November 1932, Page 5

BRITISH DEBT NOTE

IS NOW READY * A POSTPONEMENT IS AIMED AT. (United Press Association—By Electric Telegraph—Copyright.) LONDON, November 29. “The British debt 'note is ready I for despatch to the United States by cable not later than Wednesday,’' says the “Daily Telegraph.” According to the “Daily Herald,” Hon. M. Norman (Bank of England president) told the Government that a default by Britain would be disastrous to British credit. The “Daily Herald’s” city editor believes that the plan-that i? now favoured is the payment of an interest instalment equivalent to £13,500,000 at par, and £21,000,000 at the, current rate of exchange, land also a request to the United States for the postponement of thr capital payment of £6,160,)000 at par and of £9,000,000 at the current rate. It is considered almost certain that America will agree to the latter. It is understood that as regards ’the interest, Mr iMontague Norman suggested the payment partly ih • gold aW partly in dollars, but mainly .in gold.

BOYCOTT OF AMERICAN GOODS

PLAN TO MEET INSTALMENTS

LONDON, November 28 The “Daily Express” has displayed , a front page story which demands a reduction in the British purchases of American goods to the extent of th sixty millions that are needed to pay the war debt 'instalments for December and June next. The paper is pointing out that Britain in 1931 .'b r ought 10-. millions sterling worth of American goods, and sold to her only seventeei millions worth. The paper >says : “This adverse balance made it impossible to buy dol lars to meet the debt.” • Among the items of America’s products which the paper suggests that * Britain can do without there ineluded the following: Motor cats £V . 400,000; radio apparatus £700,000 ; Apples £4,000,000; iron and steel manufactures (£1,400,000 ■ (meat products £6,800,000; animal oils and fats £6,700,000; rubber manufactures £950,000. manufactured wood £1,700,000,. barley £1,500,000. ~ The “Daily Express” also emphasis.es that the drop in the value of the pound sterling in the past fortnight ;has increased the cost of the December debt instalment by over a million and W "half -'sterling.' l ' ITHE SECOND NOTE TO AMERICA. ' BRITISH CABINET ENGAGED, V*t> . (RUGBY, November 28. Cabinet Ministers were busily engaged yesterday, and will be further occupied to-day considering the terms of the second note to <b e despatched to the American Government." Montague Norman (president of the Bank of England) visited - the Chancellor of the Exchequer and 'sever- ; al Ministers and discussed the matter further at a meeting in the Commons. It i s anticipated that the note will be despatched to Washington within the next few days. Th e Government is taking all. appropriate measures t 0 ensure that their action will he supported' by the nation M 4 a whole. It should be noted that Ministerial, discussions at present proceeding, are not concerned with the question whether the payment due on December 15th, should or should nc J b« paid. That question has not yet •risen. Mr Hoover requires a fuller siSfcumentation of Britain’s case, and it In being prepared as quickly as possible. It is realised that Mr Hoover’s in-

, vitation to state in more precise ''Y terms, the reasons which led the ■ (British’ Government to suggest the irispensfon of , next month’s Instalment of war debt g payment, gives the opportunity to make a clear explicit statement of the grounds' for their conviction that it would b e against the interests of 'the whole world, including the United States’, to Tesume debt payments at this moment. It is felt that an unanswerable cas e can be presented.

FURTHER LOAN ISSUES. LONDON, November 28. On December Ist, the British Trea-

sury will receive th@ second instalment > on the new 31- per cent, conversion, to £150,000,000, also on the new two peT cent. Treasury bonds, amounting to £140.000,000. The difference of £70,000,000 between those ■receipts and the (£355,000,000 to be paid out will 'be found by normal bill operations. The Government saves twenty-eight millions in : the next halfyearly for the 3£ per cent, conversion.,