TO PAY IN SILVER

Ashburton Guardian, Volume 53, Issue 209, 16 June 1933, Page 5

TO PAY IN SILVER

BRITISH DEBT TO AMERICA.

THE TOKEN ARRANGEMENT,

STATEMENT BY CHANCELLOR.

OPPOSED TO REPUDIATION

United Press Association—Copyright) LONDON, June 15.

In the House of Commons, the Chancellor of the Exchequer, Mr Neville Chamberlain, made a statement regarding the arrangement with the United States for the payment of a portion of the war debt instalment due. He announced that the amount paid was in silver. “Wo decided to make it clear that suspension of the June instalment did not, and was not, intended to prejudice the ultimate settlement,” said the Chancellor. “We proposed to make a payment of 10,000,000 dollars in silver, which the United States informed us she would accept at fifty cents the fine ounce. We acquired this silver from the Government-of India. “I am sure that President Roosevelt’s statement appreciating the spirit in which our proposal was made will give general satisfaction. This settlement of a difficult and delicate problem is a good augury for the success of the World Conference, and may prove the first step towards a complete and final settlement of the whole question of war debts.”

Sir Stafford Cripps, on behalf of the Labour party, congratulated President RooSevelt on the realism with which he had faced the situation. He also congratulated the British Government on the satisfactory agreement reached.

Sir Herbert Samuel (Liberal) said the Liberals joined in these congratulations. It would have been lamentable if Britain had been forced into the position of repudiation. Sir Robert Horne (Conservative) said that the settlement represented a considerable alleviation of the country’s burden, as ho was sure Mr Chamberlain had acquired the silver below the'price which America was allowing. Mr Winston Churchill (Conservative) expressed admiration of President Roosevelt’s wise and generous words, which would give a message of hope to the whole world. Mr J. Maxton (Labour) declared that things had to be put in their proper prospective. “We have simply induced our creditor to take something on account,” he said. “We have obtained six months’ time in which the debt can be fully discussed.” He hoped a real settlement would be found in that period.

THE EXCHANGE OF VIEWS.

RELATION TO CONFERENCE

LONDON, June 14

The exchange of views between the British and United States Governments on the subject of war debts has been completed. > The Chancellor of the Exchequer (Mr Neville Chamberlain) was able to announce in the House of Commons tonight that with the full .assent of President Roosevelt payment of 10,000,000 dollars would be made as an acknowledgment of debt pending final settlement.

A White Paper containing papers relating to the question, was issued simultaneously with the Chancellor’s announcement.

A British Note on Tuesday stated that in the opinion of the British Government it was essential for the success of the Economic Conference that delegates should not be hampered or harassed by doubts about the possibility of a satisfactory settlement of war debts. Payment of a further instalment at this juncture would inevitably be judged to mean that no progress whatever had beeu made toward settle ment. The Government, therefore, proposed to make immediate payment oi 10,000,000 dollars as an acknowledgment of debt, pending final settlement and suggested negotiations. The Note stated: “The treatment of inter-Governmental obligations must closely affect the solution of the problems with which the W orld Conference has to deal, because they cannot be separated from the influences which have brought the world to its present plight. For instance, it is generally agreed that one of the first and most essential aims should bo to increase tlie general level of commodity prices. “It may be recalled that after the Lausanne Conference there was a marked tendency for prices to rise, but this tendency was reversed when the prospects of a final settlement pi interGovernmental obligations receded, while tlio December payment was accompanied by a sharp fall in prices which was felt in Americg at least as much as in Europe. Experience therefore appears to show that the effect of these payments upon prices is very direct.

“The United Kingdom Government had hoped that the United States Government. would have been able to accede to the request to postpone payment of the June instalment pending the discussion, of war debts as a "hole. Since this does not appear to have been found possible, Jiis Majesty s Government are obliged to decide their oiln course of action. Such a decision must in any case be of an, extremely difficult character and, in considering jt, his Majesty’s Government have felt their deep responsibility, not only to their own people^but to the whole world which is awaiting the deliberations and recommendations of the Conference with the utmost anxiety. The conclusion at which his Majesty’s Government have arrived is that payment

of the June instalment could not be made at this juncture without gravely imperilling the success of the Conference and involving widespread political consequences of the most serious character. In their view the instalment should be considered, and discussed, as part of the general subject of war debts upon which they are anxious to resume conversations -as soon as can be arranged.” In order to make perfectly clear that they did not regard the suspension as prejudicing the ultimate settlement, the Government then submitted the proposal which President Roosevelt has accepted. The United States’ reply pointed out that power to i educe or cancel debt rested with Congress and suggested that Britain make. representation in Washington as soon as convenient regarding further discussion of the entire question of debt.

A statement issued at Washington to-night by President Roosevelt points out that the payment of 10,000,0 CR dollars does not in any sense prejudice the freedom of either government in any subsequent discussion of the entire question of the debt, which will take account of this and other debt payments. The President added: “Meanwhile the world Conference is beginning under most favourable auspices and ii> is vitally necessary during the opening Pays of the conference that difficult and possibly protracted discussion of debts be avoided. In a spirit of cooperation, I have noted the representations of the British Government in respect to the payment of an instalment inasmuch as the payment made is accompanied by a clear acknowledgment of the debt itself. In vjew of those representations and of payment I have no personal hesitation in saying that I do not characterise the resultant situation as default. Beyond this law and the constitution do not permit me to go.” Continuing, Mr Roosevelt remarked. “The Economic Conference does not include consideration of war debts m its programme. The American delegates have been instructed not to discuss them with the representatives of debtor governments. • This is in accordance with the principle that debts should bo considered on their merits and separate from other international economic questions.”

OBJECTION TO REPUDIATION.

BRITAIN AND' PAYMENTS.

CONTINUED SUMS IMPOSSIBLE

LONDON, June 15. In the House of Commons, the Chancellor of the Exchequer (Mr Neville Chamberlain), speaking on the motion for the adjournment of the House, explained that it had been impossible Hitherto to arrange for simultaneous announcements in London and Washington in regard to the subject of war debts. When the December payment was made Britain had sought an early exchange of views with a view to the conclusion of the discussion before the June instalment was due. If Britain had paid the full* June instalment she felt it would appear that there was no reason why she should not pay indefinitely. This seemed impossible in view of the provisional agreement entered into at Lausanne suspending debts due to Britain. , . , Further payments would therefore be necessitated, ending the Lausanne agreements and reopening the vexed questions of reparations and waiMlebts, and plunging the world again into the uncertainty "and despair from which it had been rescued by the agreements reached at Lausanne. These considerations seemed, to outweigh all others. On the other hand, the British Government -felt the objection to any course tlmt would'place it in the position of having to repudiate its obligations. “Its view of the proper way to treat the instalment due this month was to consider it merged into the body of the debt, whereupon the Government is prepared to enter into formal negotiations as soon as can lie arranged,” said Mr Chamberlain.

FRANCE NOT PAYING. (Received This Day, 9.5 a.m.) PARIS, June 15. France is notifying Washington that she will not pay the June instalment of the war debt. PAYMENT AND DEFAULTS.' EUROPEAN DECISIONS.

LONDON. JJuno 15

The Brussels correspondent of the “Daily Mail” says that the Belgian Government has informed America that it will be unable to pay the current debt instalment. Poland will also default. Italy, Bulgaria and Czeeho-Slovakia are making .pat-rial payments. Finland will pay in full. The “Daily Mail” learns that France will not follow Britain’s example of makinsf. a token payment to America, as the Chamber’s resolution of December, refusing payment pending a debt conference, constitutionally prevents payment in any form. The Riga correspondent of “The Times” states that Latvia and Esthonia- will not pay America.

FINLAND PAYS IN FULL.

OTHERS OFFER PERCENTAGE

('Received This Day, 11.‘20 a.m.) LONDON, June 15.

A Riga cablegram states that Latvia, following Britain’s example, is making a token payment of 5 per cent. A message from Prague states that Czecho-Slovakia is expected to offer America 10 per cent. A Helsingfor message stated that

Finland paid her instalment of £29,000 in full.

It is reported from Bucharest that Rumania is paying America under 10 per cent.

BRITAIN'S ACTION APPROVED.

GERMAN PRESS OPINION

(Received This Day, 12.40 p.m.) BERLIN, June 15

The German Press is so preoccupied with the tension with Austria that it devotes little attention to the World Conference.

The Press considers that England has adopted the right method respecting war debts.

THE FINAL ADJUSTMENT.

NOT LIKELY FOR SOME TIME

(Received This Day, 11.20 a.m.) LONDON, June 15.

Discussions with a view to furthering the plans for the ultimate settlement of war debts will be continued by Sir Ronald Lindsay (British Ambassador at Washington).

Political circles here consider that final adjustment will largely depend on the course of events at the World Economic Conference, and not for some weeks, possibly not until September, is it likely that the British mission will proceed to Washington. Such a mission will probably be headed by Mr Neville Chamberlain. Any final settlement will be the subject of ratification.—British Official Wireless.

ACTION NOT A DEFAULT. STATEMENT BY THE PRESIDENT. WASHINGTON, June 14. President Roosevelt points out that Britain’s debt payment in no way prejudices either the Government or subsequent discussions. He outlined the history of his negotiations with Britain and averred that only Congress had the right to alter the amount or the method of payment of the debt. He reiterated the American intention not to discuss debts at the London Conference.

President Roosevelt concluded: “I have no personal hesitation in saying that I cannot characterise the resultant situation as default.” i

During a discussion in the Senate, Senator I). A. Reed declared that Britain had defaulted. There was no shadow of suggestion of their inability to pay. They did not want to pay.

Senator Barnett 'Glass, supporting the President, declared: ‘ ‘Thousands of boys from the debtor nations were killed in battle ,in a .cause we professed to be our cause. Not only that, but for three years after we made fabulous fortunes out of the very money we had loaned these nations, requiring them to spend every dollar loaned in this country, and charging them extortionate prices for our products.”

PRAISE FOR MR ROOSEVELT. I BRITISH PRESS COMMENT. LONDON, June 15.’ “The Times,” in a leader, says: “Nothing could he more satisfactory than the Anglo-American agreement. President Roosevelt deserves worldwide credit for his vision, courage and co-operation in the face of domestic difficulties, enabling the negotiation of the final settlement to be made in an atmosphere of goodwill and mutual accommodation.”

The “Daily Mail” says: “President Roosevelt lias accepted the proffered payment in a generous and statesmanlike spirit. Congress itself can hardly dispute the ruling of the United States Treasury in 1925, which declared it was axiomatic that no nation can he required to pay another Government sums in excess of its capacity to pay.” Other newspaper comment expresses the opinion that the way is now open for substantial trade recovery.

City business circles received the news of the debt- settlement with relief, after a day of suspense. It is likely that the announcement will have a splendid reflex in the markets today.

The “Financial News” says: “Real progress has been made toward a gen-, era! understanding on the subject of currency stabilisation.”

M. Georges Bonnet (France) had long conversations with Mr Neville Chamberlain and Mr Cordell Hull (United States) to-day. Well informed French circles believe that an agreement will be only a matter of days.