THE WAR DEBTS

Dominion, Volume 22, Issue 184, 2 May 1929, Page 11

THE WAR DEBTS

BRITAIN’S SETTLEMENT WITH AMERICA MR. BALDWIN CONSIDERS IT FAIR CURRENCY & EXCHANGES STABILISED Mr. Baldwin, defending the American debt settlement, said there would not have been any progress made in the restoration of European currencies, and the credit of the City of London would not be where it stands to-day if the finding had been postponed indefinitely. (United Press Association.—By Electric Telegraph.—Copyright.) Australian Press Assn.—United Service. (Rec. May 1, 7 p.m.) London, April 30. Mr. Baldwin defended the American debt settlement at a dinner of the British Bankers’ Association. Lord Bradbury, proposing the toast of His Majesty’s Government, declared that he was disposed to think that Britain had made a bad bargain in debt funding. He also questioned whether the Government chose the most favourable moment for the restoration of the gold standard. The Prime Minister, in reply, maintained that in the circumstances at the time it was not an unfair business settlement. We were liable for fifty millions of interest until the debt was funded or paid. We would never have made any progress in the restoration of currencies in Europe or restored the credit of the City of London to where it stands to-day if we had postponed indefinitely either paying or repudiating in the hope of making a better bargain. He claimed that the financial advantages from the restoration of the gold standard had been considerable. We got a stable currency, stable exchanges, and comparative stability of prices, and wages, and a steady, uninterrupted fall in the cost of living. In conclusion, he expressed the opinion that industrially the comer had been turned. jThe settlement effected by Mr. Baldwin (who was accompanied on his mission to the United States by the Governor of the Bank of England), and Mr. Mellon, the United States representative, was to increase the term of payment from 25 years to 50 years, and to reduce the rate of interest from 4} per cent, to 3 per cent, for the first ten years, and 3} per cent, afterwards. Subsequently the term was increased to 62 years.)

FRENCH DEBT TO BRITAIN X)NDS HELD BY TREASURY STATEMENT BY MR. CHURCHILL (British Official Wireless,) Rugby, April 30. The Chancellor- of the Exchequer, Mr. Churchill, was asked in the House of Commons whether the Treasury still held sterling bonds for the full amount of the French debt to Great Britain, and whether, in the absence of ratification by the French Government of the reduced terms, these bonds were still regarded as security for the whole debt. . Mr. Churchill replied in the affirmative, and said that the amount of French Treasury bills held was £720,960,000. Interest on the bills fell due in varying instalments on the first day of each month. GERMAN REPARATIONS PAYMENTS TO ALLIES Australian Press Assn.—United Service. London, April 30. Mr. Churchill, Chancellor of the Exchequer, in the House of Commons, replying to questions, said that Germany’s reparations payments to the Allies up to March 31 totalled £182.000,000 apart from payments in kind. BRITAIN’S NATIONAL DEBT ' DONATIONS TOWARDS EXTINCTION (British Official Wireless,) Rugby, April 30. The Chancellor of the Exchequer stated in the House of Commons that the total amount of donations received towards the extinction of the national debt was £1,290,000.