Chancellor’s Dictum Welcomed in City

Manawatu Times, Volume LIX, Issue 7493, 18 June 1934, Page 7

Chancellor’s Dictum Welcomed in City

LOANS MAINLY AFFECTED. (British Official Wireless.) RUGBY, June 15. A favourable reception was accorded in the city to the House of Commons announcement by the Chancellor of the Exchequer (Mr. Neville Chamberlain) that, in view of Germany ’s decision to suspend foreign cash transfers on Slate, loans for six months from July 1, his Majesty’s Government intends shortly to propose legislation for setting up an Anglo-German clearing office, unless a satisfactory agreement ensuring fair treatment of British bondholders and British commerce can be negotiated before July 1. The detailed arrangements and particular bonds to which tho proposed legislation will refer arc being worked out and will, of course, depend upon the outcome of negotiations with Gcr many. The Dawes and Young loans are affected by tho German decision a.nd the maximum amount of anuual service, including sinking funds, on these loans is £2.230.000. Of this total interest at 7 per cent, on the Dawes loan, in whi.ch there is no gold clause, amounts to £GG1,255, and with sinking fund to about £1,000,000. Service aldne accounts for £614,556 and the total service, including sinking fund, £780,000. When 60 per cent, allowance for tho difference between sterling and gold payment is made, the total annual service on the sterling issue of the Young loan is £1,230,000. In view of the clearing house proposal attention is being directed to the Anglo-German balance of trade. The overseas trade returns show that in 1923 the United Kingdom imports from Germany were of a value of £30,000,000. United Kingdom exports to Germany, including freight, on British vessels, v/cre valued at £17,000,000. The warning given by Mr. Chamberlain that purchases of German bonds now held by foreigners will be made at the purchaser’s risk was taken on the Stock Exchange to indicate that any plan adopted will apply only to bonds in British hands before the latest development. On the Stock Exchange German bonds made a recovery on the Chancellor’s statement, but left off under best with Young at 43 and Dawes 62. Violates Sweden’s Rights STOCKHOLM, June 15. Mr Sandler, Foreign Minister, declares the German moratorium violates Sweden’s rights a.nd interests. The Government reserves the right to take any measures necessary to safeguard thorn.