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Hokitika Guardian, 10 December 1932, Page 4

The United States reply fo the British note in connection witli the war clouts p; jymerits ! is not in “’favour of the request “for an extension of the payihehtyl due on loth. December. This ciccte'ihit will resolve the British Government to pay the instalment in gold, an action tliait will not be welcome to the United States treasury, which already lias an excess of gold. The decision of the British Government to pay the instalment in gold will close the dcor far -a long time to t.ie possibility of Great Britain’s return to the gold standard. Ais the London “Times” states in a recent message the consequences of the payment being made in gold! will not have nearly as disastrous an effect as a default would have been, and that when the next payment becomes due the new American President will have had the. opportunity to review the whole position. The decision of the United States will prove unpalatable to the French Government because that will also affect the payment of French indebtedness to Great Britain in connection with the war debts, and so the decision will have a very wide effect. Britain has always intimated her intention to pay, whatever the result, and that intimation, will be carried out, but the decision of United States will not improve the financial conditions prevailing in Europe, which at rre-ent require all the ass'stance passible to ward off the great difficulties prevailing.