DEBTS MORATORIUM

Hawera Star, Volume LIII, 9 June 1933, Page 9

DEBTS MORATORIUM

Declaration by Germany ONLY TEMPORARY MEASURE Credits Given Before June, 1931 OTHER TRANSFERS TO BE MADE SPECIAL CONVERSION FUND.

(United I-ress Association—By Electric Telegraph Copyright.) Received 2 p.m. to-day. BERLIN, June 8. The Government has declared a general moratorium on all credits granted to Germnay prior to June 1, 1931, because the banking crisis in tliat month caused Germany’s present financial position. Transfers will be made as far as possible on credits granted after that date.

Existing .standstill agreements are at present not affected, but _ Herr Schacht hopes to obtain an alleviation during the forthcoming negotiations at London. The service of the Dawes and Young Plan has been suspended and private debtors must continue payments into a special conversion fund which the Reichsbank promises to convert into foreign currencies whenever possible. Herr Schacht, in a letter to the Government, emphasises that the moratorium is only temporary. Germany intends to meet her’ obligations in the .future., Herr Schacht stated that the delay in commencing the moratorium would enable modifications to be discussed with creditors in London, on June 13. Also the World Conference would be able to. seek an amelioration of the effects of the stoppage. He hoped the world would receive the news without anger and would recognise that it was an international problem, remembering that Germany had to earn sufficient foreign currencies to enable her to pay her debts.