WAR DEBTS

Gisborne Times, Volume LXXIII, Issue 11827, 7 January 1933, Page 5

WAR DEBTS

GERMANY WANTS TIME

MIXED CLAIMS PAYMENT

(U.P.A. by Elec. Tel. Copyright) BERLIN, Jan. 5

Germany has informed America that slip will bo compelled to defer oho payment of £1,650,000' duo on March 31 under the mixed claims agreement.

CONFERENCE PROPOSED,

(U.P.A. by Elec. Tel. Copyright )

WASHINGTON, Jan. 5

Tbo President-elect, Mr Roosevelt, has requested that the Secretary of State, Mr Stimson, confer with him upon international affairs. President Hoover to-day mad 0 arrangements, for such meeting, but no time was set.

It was assumed that tho agenda for the! informal meeting would include the subjects of war debt’s, disarmament, and world economics. All have been discussed between tho President and Pre’sidcnt-elect.

.ANOTHER ASPECT

EFFECT OF PAYMENT

While tho opinion in America of the man in the street regarding war debts seems to be that payment in full should, be made at all costs, there seems to be the belief among financiers that such payment would not be an unmined blessing for the United States. In that connection the, following is interesting: “Hesitancy of the investing public to enter into commitments on any appreciable scale is attributable chiefly to uncertainty in regard to the war debts, particularly those of Great Britain, which paid tho United States, on December 15, some 95,000,000 dollars of which 65,000,000 represents payment on account of interest.

“According to the debt funding agreement with Great Britain almost ten years ago, the British Government is privileged io apply for and obtain an extension of payment of principal for a period not exceeding two years. This extension, however, does not apply to interest payments, and is granted upon ninety days’ previous notice. Since [such notice lias not yet been given, Great Britain apparently is obliged to make payment, in full, unless the United State* decides to waive the giving of such notice bv her debtor.

“It is apparent that even if ihe United States refuses to grant an extension. Great, Britain will, not default, irrespective of the sacrifices she may he, called upon to make. That the consequences of such sacrifice* are hound to offset whatever benefits ihe United States may hope to derive front payments, is generally accepted among financiers. Despite the abandonment of the gold standard by Great Britain, the pound continues the emblem of international credit, and a. largo percentage of the world’s commercial and financial activities is based upon British currency. “The losses which have resulted already from a pound fluctuating within wide limits, reaching unprecedented low levels and exercising in turn an adverse, .influence upon the prices of commodities, notably cotton. and wheat' are much larger than those unfamiliar with economics believed possible.” •