BRITAIN’S DEBT

Hokitika Guardian, 16 December 1932, Page 5

BRITAIN’S DEBT

PAYMENT IN GOLD COMPLETION OF ARRANGEMENTS (United Press Association—Fy El©2tric Telegi pn—Copyrignt.) •, LONDON, Deeeniber 14. Arrangements ... were ''-''''completed through the Bank of England and the Federal ; .'Reserve Bank, 'Whereby the British payment of 95,550,000 dollars 1 in gold, will, to-morrow be at the disposal in New York, of the United , States Treasury.: It' is believed than | no further-communication Hs likely regarding this payment. ’ , Replying ito the Debt debate 1 in the House of Commons, Mr Charfibferlain (Chancellor of the Exchequer) ’explained that gold.ywould be taken fi-orri the Bank of .England issue department, and paid for at the current' gjfaid price in treasury- bills. The Bank s would keep £19,500,000 as the value of the purchase qf, its gold. The other ten millions would go into? the exchange ! equalisation-, account, where it would remain as an asset until it was required to buy -gold again. It was true in one sense that if-’'- the fiduciary (note) issue \yere not increased, there Would be a contraction of • Credit j but sufficient credit was available ’ -to make it unnecessary to create,-Inbre', unless

some unforeseen circumstances arose. He concluded that the friendly tone of the United v liugiiry for the success ”df" negotiations that were to be • undertaken filially to settle this long vexed problem. • Mr Lloyd George recalled the fact that President Wilson signed the Peace Treaty in 1919 and’’declared, amid cheers: “I S ay that the United States, by its repudiation' bf that signature is absolutely ; responsible; If she had -stood by her ‘ signature then, the whole story would have been different. Throughout all* the pcst-war discussion, Britain fought practically alone for fair terms. I begged President Wilson in 1920 to come in and wipe out the whole , burden of the reparations. I ask Mr'Chamberlain, when he pays now, to disregard the&e pedantries—ad to please the of. London, which has too often been a curse to our trade—and to take a bold line, and to" say, '“This has’ got to 'stop! We are the greatest creditor nation in the world in proportion tp pur population, and we are paying the,.' Dear- j iest taxation. It is'to save bur honour and saveslie peoples of tlie world ' that 'we must be heard/* - . „ I Mr Lloyd ' George, at' the outset j caused a sensation by advancing to the table witlv a.: dossier of papers, which he admitted were note's of the Cabinet oh I ’,‘the debt question ‘jit the days of the Coalition. ’ He admitted that he was not en/tle.d w laupjihh/h the paper» -without tun cc.uraytt the Prime Minister, wW wouldff/jftvQ to consult His Majesty, though he thought it would serve a public purpose. , ■ ,r : There were a series of interjections and cries: “That is unfair,.’’“when lie declared that Sit- R. S. Horne and Sir Austen Chamberlain lia,d . dissent- j ed from the Balfour Note. Bbtli insist- ! ed that they were only opposed to the Note going ,to the Europena Powers, when it was really directed "to the United States. ' ' ' ■

Mr- Lloyd' George: This only"makes it imperative that the papers be published. ' >. INDECISION IN O AMERICA. URGE TO PRESIDENT HOOVER.. WASHINGTON ■ December 14. The New York “Herald-Tribune’s” Washington correspondent telegraphs: “Some of the most. irreconciliable anti-cancellationists in Congress were urging the President to appoint o.n his own executive responsibility, a bipartisan commission to. meet, separately, with the representatives of the foreign debtors in. goo^l, and to consider their mutual problems!’ While it is not certain that Mr Hoover will adopt this particular plan, which has been developed in sufficient detail to envisage a commission of three Democrats and three Republicans, only two of whom'would be Cabinet officials, it was clear that he will begin pavihg the way for the averting of a crisis on June loth, 1933, when the next instalments are due. The negotiations, in- any event, would be limited to those nations which keep their' debt contracts in the meantime,. ..

SET BACK FOR THE FRANC. NEW YORK, December 14. The effect of the overnight news on the foreign exchanges were interesting. Whereas sterling <rose to 3.291, as against this week’s previous high level or 3 dols 28§ cents, and 3.21 J a week ago, and 3.14| at the lowest level on November 29th, the franc yesterday declined to 3.09, as compared with 3.29 g when the debt notes were first presented" almost exactly a month ago,. The present’ rate appears to be the lowest since the franc wds ' legally stabilised in 1928. Undoubtedly it touches the gold exporting point at Paris. Foreign exchanges ruling in London this morning were New York 3.281 against 3.271 overnight; Paris 84j. against 83.3-3 overnight. ,_ ’ ‘ ,