FULL MORATORIUM

Northern Advocate, 15 June 1934, Page 5

FULL MORATORIUM

GERMAN LOANS DECLARATION ON JULY 1 DR. SCHACHT DEFIANT. ALLIES HELD TO BLAME. [United Press Association —By Electric Telegraph.—Copyright.) (Deceived 0 n.m.) LONDON, .Time 1L The Berlin correspondent of the “Daily Express” says a complete moratorium on all Germany's foreign loans will he declared on July .1. The president of the Reiehsbank, .Dr, Schacht, will make a revelation at a secret meeting of-the Central Committee of the bank today. The moratorium will ho irrespective of warnings hy the British and French Governments, and Dr. Rchacht will make no excuses, says the correspondent. He will simply say: that Germany has no money, and 'will accuse the Allied Governments of a 'breach of faith in not assisting Gorman trade in order that, she should have a balance of gold and foreign currency with which to pay. . Dr. ■.Schacht will say; “As' the Allied Governments have not’ 'fulfilled their promise, the fault is theirs, not ours.” A particularly serious situation, will be created by the moratorium in regard to the so-called potash loan, guaranteed by the German potash industry. BONDS FLUCTUATE OX LONDON EXCHANGE' GERMANY’S INTENTIONS’' (British Official WirMess.) (Received 12.110 p.m.) ' RUGBY, June 14. Following the German announcement of a six months’ moratorium .oh all foreign loans, including Dawes and Young payments, German bonds fluctuated freely on the London Stock Exchange and showed sharp falls at the close. The German Minister of Finance, in a statement, said the interest and amortisation services on . all ■ Stato loans for the present would be suspended. The Government approves the Reiehsbank :’s action as far as the decision, entails. Government obligations, thereby showing that it has no intention of changing the interest agreements. In a one-sided manner, the Eeichsbank offers coupon holders preferring cash to funding bonds, to purchase coupons at 40 per cent of their face value at any time during six months after the date on which the respective coupons are duo. ■ f