HUGE DEFENCE LOAN

Taranaki Central Press, Volume IV, Issue 359, 13 February 1937, Page 6

HUGE DEFENCE LOAN

BRITISH POLICY.

DETERMINED EFFORT. May Lead To Boom and Burst Press Association —Copyright. London, Feb. 12. Mr. CSiamberlain't' defence loan announcement was made after the close of business and did not affect prices on the Stock Exchange. The market is already dull, and is unlikely, in the opinion of the Citv Editor of the Times, to derive much encouragement from the statement. Conditions for the raising of a loan are hardly favourable at present. Temptation to Aggressors. “Let countries throughout the world mark the determined effort we are making,” said Sir Samuel Hoare, First Lord of the Admiralty, at Birmingham. “Let them remember that when v.'e put our hands to a great task we are willing to make sacrifices. Liberal members of the House' of Commons Win meet shortly to decide their attitude. In the meantime they express astonishment at the magniude of the sum. The executive of the Parliamentary Labour Party met immediately after the announcement and unanimously expressed the opinion that the plan should be opposed. Mr. PethickLawrence said after the meeting that the loan would lead to boom conditions in which there would be a vast “rake-off in the shape of Windfall profits, followed almost certainly by a depression.” Official circles in Germany find nothing to criticise in the news of the loan proposal, states a Berlin cable. Tim official spokesman said: “We take it that now Britain is making use of her rights as a matter of course,. We shall remembqr this when we are criticised.” The “astronomical” figure of the loan when converted into lire is taken as final proof that Britain is now at the head of the armaments race, says a message from Tiome.

At Paris the news is l Welcomed, but it is regretted that such expenditure is necessary. Britain and France would have . preferred a srong league of disarmament.