[?]FOUND IMPRESSION

Rotorua Morning Post, Volume 2, Issue 396, 3 December 1932, Page 5

[?]FOUND IMPRESSION

■yment means disaster ' * V. . V ■ • - fjERlCAN ©PINION STIRRED GRAPHie PHRASES son 1 ' — ' em«r's significant statement the a® — : i ' l ld p® 5ea]a*itish note to the United States on the resumptiott of war eliefSits on December 15 has been handed to Mr. H. L. Stimson, dpoinHstates Secretary of State. It is a comprehensive document ®reviewing the position. and unequivocally points out that if ®ion of payment is insisted up'on it will have to be made in Bould have far-reaching and disastrous effects on the trade ®e world. 1 fl ||te has caused one the greatest sensations in diplomatic VVj j®, it is reported, has created a most profound impression e ®ted States. Mr. Hoover stated that the note was'a true . C. ®oi whai would follow Congressional obduracy. , ti.B

b MfB . . '■ official Wirelflss) ision® me ®ec. Dec. 2. over® wheB Kugby, Dec. 1. ition® note to America says the® j. R of the depression may Hut war debts and re®been one of the major nnie® cosHsome respects it may st a®r the Governments to n. Hrorlcl's troubles certain ld dtMrly within their powoii, Hnsibility. euri® requir em cnts for war hisfiexceeded any normal ;h:e M-ment, and could only ' Kr loans from producing ■hese wero taken not in ■goods. lat M Tres®5 made *° -A-llics flin'HH States, Britain and lirer®^er' reached the n iii®1' over £4,000,1116® 'f «wn to ^'eces , ac®r loans were blown to 6 Hroduced nothing to re.u. :■ ^a'Mng run international 6 !®y be paid in the f orm of ) ivt» . wices. Btoi's in so far as they Bamereial policy preclud- ■ K in goods, compelled edJ®t0 pay in "°ld* 1S^®r a di"ain on the gold »pon* many countries, and c,Bi the price of commo^.t®ms S°M currencies, al'^®espread ruin to produc)YetHjor antj creditor counU1' '^Befiously increasing the ald ?B;ommercial debts. 3 f®j ;Hd in an intolerable and Blen of unproductive war Bie withdrawal of credits wasBiy and the consequent IhrlBpf capital forced the kBdom to abandon the j daBd with world-wide reTfaifl ov,iB benefieial effects of nisBral transf ers have grave;ter®ed the diflieulties of wi®ts. toBe and credit cannot reB end is imt to attenipts Btream of capital uphill." m profit a creditor couninq®a few niillion pounds or e I® therehy perpetnates »s' Ber. 1 aB settlement, howhedBus it may seem, would and again by the 't would make to ■d Ballte® r gr^B'e''t a Disaster ■ffiB^e P°wer of the Goves,Mthe world, and particuIhe United States and ■pingdoni, a - two of fhe B^itor nations, if they 0pi,B 'n co-operation to make ip.®l essenthd -tep towards ra!®^'sa^er — finttncial, econjBHcal." bDiBreCalls ^la" British ysB 'e in States £24,000,1)00,000 of viB^ou^ on('-tliird was finan■0win- B-om the United ik«1'nment- I'proximately ,eIIB? was "''tained by the re® an^ PPcnrities, and in ;B British Go-vernment raisrB'al loans on the American .®le tTnited States enleciB r t° th° amuunt of £304,ry®lat,ve Position is that tates made loans of a®000. United King®slmilar loans of £1,600,B United States rec® 0'000 and the Unit" ,„®m n°thing, having pass- ;,® receipts to the United jBwell as £134,000,000 in BJritain's Claim hiBf ei'es^ Was taken into ac- « *000,000 had heen • British taxpayer. While » n. °f the total indebt•e United States was only ® °/ debt of th'e i!'Ka to the Uriited States *• eame from Britain. >®,.as I'hey did after the »B,!?g ^roni the war, these ® te Jn the view of the ®i lnnient a strong claim for rB c^anR'es circum'Br, , . ave increased the ; B ri ain>s obligations, it is •7-that the British debt is V Veims of Sold, hut the | . british people is ms oP sterling; con- # , e Payment due on Dec- * as increased from £19,B° aPproximately £30,000,average wholesale m ' * m the United States ®, Pei'iod when the debt ifl ed was 189 and it is now My e debt thus represents BicpfumS of ^°°ds- not less aniount borrowed. ilft. . American tariff refl 1Jnport of British manuBt? ; When the British Bd I?Sn nded in 1923 these BBa||j||^^^M^hi^vear

United States imports into th'e United Kingdom show an equally remarkable fall — from £211,000,000 in 1923 to £59,000,000 for the first nine anonths .of 1932^ The total trade between the two countries since the funding agreement had fallen from about £300.000,000 to £100,000,000 yearly. If the war : debt payments had to be resumed the heavy adverse halance of visible trade amounting to £78,000,000 i in 1931 -would have to be redueed | by adopting measures which would | further restrict the British pur1 chase of American farm products. ] To the extent therefore that if payj ments were resumed to the United ' States Treasury, a definite loss ; must follow to the United States' j producer. ; "The reserves of the British Gov- ! ernment in gold and foreign exchange, | though adequate for mitigating exchange fluctuations, were not intended and will not suffice to cover a payment of 95,500,000 dollars due on December 15. "The only remaining alternative' will be payment in gold. This will involve the sacrifice of a considerable part of the gold reserve of the Bank of England, which is widely regarded as no more than suflicient for the nesponsihilities of London as a financial centre.