LOANS IN FAULT.

Bay of Plenty Times, Volume LX, Issue 10830, 31 March 1932, Page 3

LOANS IN FAULT.

* A (SHOWING LIST, The report of the Foreign Policy Association on recent defaults of Gov- ■: eminent Joans makes gloomy reading *ays the Economist. Three years ago only one of all the Government loans listed on the Now York Stock Exchange was in default, whereas , b° w the number has reached 49,.and there Is grave danger that others will be added In. the near future. The defaulters—not by any means all of them ropudiators—range literally r°m China to Peru, but the greater cumber arc in Latin America. Last mr began with the suspension by Olivia of interest payments on her esternal debts, and she was follow- ■ « by Peru, Chile. Brazil and other ountrJes, of which Hungary is the west covered by the report. The Port largely exonerates the debtor vernments from responsibility for P resent unfortunate situation, asi their insolvency to unwise th ■ ® ancl Ille severe decline hi stnff PriCes law “hiermls and fooduns, with disastrous effects on the ennes and on the external trade ■ of the debtor countries. “In hddffion to tiic danger involved in “Prodncth-p individual investments, •I, -'Uj an even greater menace in Quri? extension of credit fniiJ™ a , boom period, especially when are as 1)00111 Periods usually vnl ;s all abrupt reduction in the riorf available loans in a pethe As a result of :. arc, kJ ln prices (he debtor countries , ■ aßkecl t 0 Pay, in terms of mmodittes more in both principal thft v»i CTCS I t!ian 18 consistent with the rcceiv 6d. Meanwhile * of tariff barriers makes "it i« m f Ven more difficult, and thus ■ ■ Of ■ surpr ising that a number to ren. Iluve fouilcl it impossible oblisations t 0 the