FOREIGN BORROWERS

Evening Star, Issue 21519, 18 September 1933, Page 9

FOREIGN BORROWERS

PUNGENT CRITICISM GOVERNMENT INTERVENTION URGED Press Association—By Telegraph—Copyright. LONDON, September 17. Sir Arthur Samuel, addressing the Secretaries’ Association, said it was unlikely after the experience in regard to the transfer of the moratorium that Germany would bo able to raise money again from Britain, France, or America during our lifetime. She must be left to her own resources and her fate. Ho added that it was unjustifiable that debts should bo incurred by uncreditworthy borrowers. The principal cause of the partial collapse of the world’s economic structure was the abuse of credit. It amounted to vulgar dishonesty. No British money should be lent to foreigners proved uncrcditworthy. Germany’s cold, selfish disregard for contractual obligations had shocked all honest men. The arrogant trampling on the rights of others was characteristic of Prussian mentality, which caused the war. The transfer of tho moratorium constituted one of the worst cases of debt default. Rumania’s default' was almost as bad. Untold millions of British savings had been lost. South America loanmongers, puffing sentimental hysteria and ballyhoo, had enabled unjustified loans to be floated in London lor the benefit of uncredit-worthy borrowers. Some overseas borrowers would ultimately receive British goods as gifts. The Government had a public duty to check indiscriminate public lending and to protect investors’ savings.

[Sir Arthur Samuel was Minister for the Department of Overseas Trade, Parliamentary Secretary of the Board of Trade, and Under-Secretary of State for Foreign Affairs, 1924-27. He was Financial Secretary to the Treasury, 1927-29. Ho has occupied many other responsible positions under the Government, and has written several books and essays. Ho is head of one of tho oldest families of purely English Jews in England.]