DEPARTURE OF GOLD DOES NO HARM

Manawatu Times, Volume LV, Issue 7039, 24 December 1932, Page 7

DEPARTURE OF GOLD DOES NO HARM

Paper Money Need Not be Increased FOREIGNERS BUYING STERLING United Press Association—By Electric Telegraph—Copyright. LONDON, Dec. 22. Eeplying to the London Chamber of Commerce representation that the fiduciary issue should be raised so as to offset the amount in gold paid to the United States, Mr Neville Chamberlain (Chancellor of the Exchequer) emphasised that it was a misconception that payment to America correspondingly contracted the currency. He saw no reason to anticipate a shortage of credit or the necessity of increasing the fiduciary issue. Mr N. Hore-Belisha (Financial Secretary to the Treasury), in the House of Commons debate, mentioned that between May 11th and December 14th tho banks’ gold holding increased to an amount almost equal to the payments to America. The notes in circulation increased in the same period from £358,000,000 to £372,000,000, and cash at the clearing house from £179,000,000 to £193,000,000; so credit was notoriously abundant. Furthermore, said Mr Belisha, instead of foreigners selling sterling consequent on tho reduction of £20,000,000 of notes in tho banking department, they were actually buying, so the worst anticipated had not happened.

FRANCE WILL NEGOTIATE DRASTIC SACRIFICES NECESSARY AT HOME. PARIS, Dec. 22. The Government has announced that it is ready to negotiate with Washington on the lines of the Chamber’s vote of December 14th, with a view to a general debt settlement. It is grateful that a serious effort has been made in Washington since the vote to smooth the difficulties. Referring to the internal situation, the Government insists on drastic cuts and sacrifices on the part of all citizens, and the reorganisation of the public service.

By a vote of 402 to 187, the French Chamber of Deputies rejected the Harriot Government’s proposal to pay wit reservations the instalment of War debt to the United States due on December 15th. The Government thereupon resigned.

ROOSEVELT AND HOOVER WAR DEBTS AND PROBLEMS DISCUSSED WASHINGTON, Dec. 22. The discussions between President Hoover and rrcsident-elect Roosevelt on war debts and other international problems have failed to produce any substantial agreement as to procedure, and tho probability, as seen in informed circles, is strongly that little action will be taken beforo March 4 toward a final settlement of the present difficulties.

Mr. Roosevelt, in correspondence made public on Thursday at the White Heuse, declined ‘‘to accept any joint responsibility” in the appointment of a commission to explore war debts and other international problems, telling President Hoover in effect that he desired a free hand after he took office on March 4.

ROOSEVELT REPOST lIOW LONDON LOOKS AT IT LONDON, Dec. 22. The first impression of disappointment at President-elect Roosevelt’s refusal to co-operate with President Hoover was removed later by reports that Mr. Roosevelt had appointed his own advisers in Mr. Baruch and Mr. Owen Young. The action is interpreted as a decision to take a definito line on his own responsibility as soon as he enters the White House.

The choice of Mr. Young is regarded favourably, as few have a better knowledge of European conditions than the author of tho Young Plan.