WAR DEBTS.

Auckland Star, Volume LXIII, Issue 103, 3 May 1932, Page 7

WAR DEBTS.

PLAIN SPEAKING.

COMPLETE CESSATION.

" First Step to New Era," Says Mr. Runciman. FULL PAYMENT IMPOSSIBLE. (United P.A.—Electric Telegraph—Copyright) (Received 2.30 p.m.) LONDON, May 2. Lord Leverhulme, presiding at a London Chamber of Commerce dinner, said confidence would not be restored until the problem of war debts and reparations was solved.

All nations were looking at the question of international indebtedness in a new light, realising the hopelessness of attempting to settle in full debts that were contracted on a gold basis and now required the production of three times the quantity of goods originally necessary for payment.

Mr. Walter Runciman, President of the Board of Trade, said the first step to open a new era must be the complete cessation of the payment of war debts and reparations. It was not sterling, but gold, which had fluctuated in the past 10 years. Industry could not stand the continual sag of prices. There was only one way of dealing with, the situation. "Let's all go on the sterling basis," he said, "and then many of our troubles will be solved."