RATIONS’ CREDITS

Manawatu Standard, Volume LIII, Issue 249, 18 September 1933, Page 7

RATIONS’ CREDITS

QUESTION OF WORTHINESS. CAUSE OF WORLD'S COLLAPSE. A PLAIN STATEMENT. (United Press Association—By Electric Telegraph.—Copyright.) Received September 18, 8.10 a.m. LONDON, Sept. 17. In an address to the Secretaries’ Association, Sir Arthur Samuel, Financial Secretary to the Treasury, said it was unlikely, after- experience in regard to the transfer moratorium, that Germany would bo able to . raise money again in Britain, France and America during our lifetime. Sbe must be left to her own resources and fate.

He added that unjustifiable debts.incurred by uncreditwortliy borrowers were the principal cause of the partial collapse of the world’s economic structure. The abuse of credit amounted to vulgar dishonesty. No British money should be lent to foreigners who were proved to be uncreditwortliy. Sir Arthur Samuel said that Germany’s cold, selfish disregard of contractual obligations shocked all honest men. The arrogant trampling on the rights of others was characteristic of the Prussian mentality which caused the war. “The transfer moratorium constitutes one of the worst cases of debt default,” he said. “Rumania’s default is almost as bad. Untold millions of British savings were lost in South America. Loanmongors puffing sentimental hysteria and ballyho have enabled unjustified loans to be floated in London to the benefit of borrowers not worthy of credit. Some overseas borrowers will ultimately receive British goods as gifts. The Government has a public duty to check indiscriminate public lending and protect investors’ savings,” he concluded.