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Hokitika Guardian, 5 January 1933, Page 4

“The effect upon the volume of world trade of refraining from producing is obvious, hut the importance of refraining from lending is apt to .he iorgotAen,” said Sir Arthur Maxwell In his presidential address- to tbe TnHitiito: of Bankers in London last month. “It is difficult to estimate accurately the amount of long-term loans now oirtaiwling, but it has bee" suggested that the total amount of international long-term indebtedness ou'trt Hiding, excluding war debts, is of ti e nature of rCCJ,OI )0,<.00,000. Iho true figure mnv be a good deal lens or more, but that is tbe degree of magnitude, and if may be smd to represent the balance of indebtedness incurred in the as a result rf international trade which was not really settled at the time it was incurred, but is still being financed bv hii’.g----101-111 debts. Fnt'l so no now factor appears it in •absolutely necessary that a very considerable volume of now international lending r? a long-term character sh mid 1* resumed in order that the vdrmc of world trade may ’return to -bo size that wo should like to see, Short term lending plays a

similar and important part, but short is not a propels substitute for longterm lending in this ease. Some of the habitual lenders are not longer able to lend; for instance-, in our own case, I am doubtful whether we have any substantial balance cf paymeats available this year lor international lending, but there are some countries who even now could lend abroad, but very naturally do not do so in view of all -'the uncertainties which they can see. It is essential that all and each of those who can do so should exert every effort to remove even a part of these uncertainties which delay foreign lending.”