TEACH A LESSON

Rotorua Morning Post, Volume 2, Issue 392, 29 November 1932, Page 5

TEACH A LESSON

PAYMENT IN COLD London, November 27. The Daily Telegraph's financial editor says the city feels that failing an amicable settlement payment should. he made on December 15 under a vigorous protest, with the clear reservation that neither Britain nor the world's monetary system would permit of further transfers under the old scale. Already perhaps tlie weakness of sterling is heginning to teach America the lesson that the war debts block the way to stahility, and the payment in gold might carry the lesson a stage further. There is growing support in responsible banking circles of Sir Robert Horne's advocacy of this method. In a speech last week Sir Robert Horne, a former Chancellor of the Exchequer, said: "I have no douht whatever that we ought to pay. For Britain to default after her extraordinary recovery in the past year, and the prestige she has resumed in the economy world, would he a disaster, not only for us but the whole credit structure of the globe. How should we pay? — I have no doubt whatever, that we should pay by shipping har gold. There is at present £140,000,000 of gold in the Bank of England. We have lived long enough off the gold standard to know we need not be frightened at the absence of some of this gold."