BRITISH LOANS

Hokitika Guardian, 17 December 1932, Page 5

BRITISH LOANS

MADE SINCE 1918 RAISING FIDUCIARY ISSUE. (United Press Association—By Electric Telegraph—Copyright) LONDON, December 16. Answering a Commons question, Mr Neville Chamberlain said the amounts now owed on account of loans made by Britain since 1918 were: Belgian reconstruction loan nine millions s* x hundred thousand; and refief loans as J follows: —Austria £8,825,000; Poland j four millions; Roumania £2,101,000;| Jugo-Slavia, £1,955,000: Esthonia, £218,000. All these loans were made for productive purposes, and were therefore analagous to commercial loans, and not to war debts. Payments were suspended under the terms of the Hoover moratorium, and a furher suspension after the end of the Hoover year had been coneded in view of the financial difficulties at present confronting these countries. The London Chamber of Commerce hag wittenl to Mr McDonald urging thnt the fiduciary issue b 6 raised in order to offset the payment in gold to the United States,

Mr Chamberlain, dealing with suggestions on this line, explained that during the Commons debate, that the fiduciary issuei could only be utilised by the Treasury on representation from the Bank of England. No such representation had been made, and lie considered it essential not to give the impression abroad that they were careless about gold reserves or wanted to conceal anything that was taking place.

The “Daily Telegraph” dtescribes* the debate as a plain unanswerable vindication of Britain’s debt policy-

The “Morning Post’’ says: In making payment in gold, the British Government have behind them a nation united without) distinction of party. America has refused to make that contribution towards recovery, without which, in our conviction, recovery can never begin. PAYMENT OF THE WAR DEBT. MARKS END OF CHAPTER. (Received this day at 8 a.m.) LONDON, December 16. Financial experts say that the city envisages a flight to the pound on the ,theory that the recent events tended to enhance British prestige and credit. 'Sterling continued to display firmness and would .have closed .substantially higher, but for official intervention.

Tlifi “Times’’ gays thtfit the payment iflflst he regarded as the ending of a chapter of the long history of war debts, and maika the beginning of the second, which must bring 'the story to an end,

“In preparation of its British c» se , the choice of its exponents cannot be taken in hand tco /oon. Meantime there must be no bickering. Nothing can be gained by harking back to the past.