GLOOMY OUTLOOK

Gisborne Times, Volume LXXII, Issue 11661, 11 June 1932, Page 5

GLOOMY OUTLOOK

LITTLE SIGN OE AGREEMENT

AT LAUSANNE.

GERMAN MORATORIUM PRD 13-

ABLY EXTENDED

FINAL -STAGES AT LONDON CONFERENCE.

NATIONS MAY TELL AMERICA " UNABLE - TO PAY DEBTS.

(U.P.A. by Elec. Tel. Copyright) (Received June 10, t 7.40 p.in.)

LONDON. June 10

While Mr. MacDonald's meeting with At. Harriot -cn route to Switzerland is■ everywhere welcomed, there is still little sign that a permanent agreement at Lausanne is possible, according to the Daily Telegraph.

Official circles .in London , expect the procedure to be sonny hut- as follows : Germany will declare lief inability ever to resume payments and Franco- will not accept this position. The- immediate result will be an Extension' -of-:the moratorium until the end of the year, the appointment- of committees and . adjournment, then tlio holding of tlio • woOd economic conference at London in October, a similarMippointmont of -technical committees, followed by an adjournment during the American elections in November, r-y-ernr.rg.ihg as a jplcjuu-y conference when the American policy will be-' re-stated. The London and Lausanne .conference, in the light thereof, will then enter their final stages at tlio end of the year in an attempt to reach decisions. It is understood that, with the advent- of M. Hei'i-iot, the French attitude has undergone a modification. It is believed the French Government might even consent to the cancellation. of the Allied war debts- or Britain xnay agree to join. France, Italy; Belgium or others concerned by serving notice oil America of their inability to pay debts, since they themselves are receiving no more payments from Germany.

It is reported from Berlin • that Herr Von Papon has decided to go to Lausanne himself, and is leaving on ’Tuesday.

RETURN TO GOLD STANDARD

LEAGUE COMMITTEE’S RE-

COMMENDATION

HIGHER PRICE'LEVELS AND AID TO CENTRAL BANKS.

(U.P.A. bv Elec. Tel. Copyright.) ” GENEVA, June 9-

A return to the gold standard, the desirability of a rise in price levels and aid to Ur; Central Banks wore advocated in the final report of tli u oold delegation of the League of Nations' Financial Committee. A tcturn to the gold standard, however, cannot be expected pending the *estoration or a reasonable degree oi freedom in movements of goods and servicers, tin: settlement of reparations •mtl war debts and the establishment of certain guiding principles in the working of the gold standard. Tlu; delegation considers that the rapid decline in prices beginning m |p, of) can not be attributed to a doffcicncy in the, gold supply, winch has been adequate to support the credit structure required by the Board °t Trade. 1 A -minority report, signed by the chairman, M. Albert JaniLem. SU’ Reginald Alan I- and Sir Henry S.ti-ak-oseli. contends that the •dominant caifsy of the breakdown was the maladministration of the gold reserves, beginning in 1929, and emphasises the practicability of restoring and maintaining gold prices at a suitable level by a concerted attempt to restore the wholesale prices to the 1928 level.