POSTPONING THE WAR DEBTS

Nelson Evening Mail, Volume LXIV, 6 August 1931, Page 12

POSTPONING THE WAR DEBTS

THE EXACT SIGNIFICANCE '■ The exact significance of tlio term "postponement” in the proposals by President Hoover ancl Air Snowden regarding wav debts has not yet been explained. According to the original announcement on 21st June, ‘‘the American Government proposes the postponement during one year of all payments on intcr-Govornmontal debts, reparations and relief debts, both principal and interest, of course not including the obligations of Governments held by private parties.” An attempt was made by the London "Financial News” to elucidate the exact scope of the proposed moratorium. "A proposal to postpone debts for a year,” it remarked, "might imply that the postponed payments would fall due for settlement immediately after the year was over; in other words, that (Europe would be called upon to pay up on Ist July, 1932, the £50,000,000 or so, which it had been excused from paying between Ist July, 1931, and 30th June, 1932. That would, of course, be a mere mockery, and calljiot, therefore, be Mr .Hoover’s meaning; Doubtless what ho. intends is that The 1931-2 payments' should 1 become payable in 1932^33 —that the whole series of instalments should bo put back a ■year. That would mean in effect that would not receive until 1989 too ’£50,000,000 which she is now willing to .-••'/postpone.’ ■, That indicates the real ' 6 "itfcnbrosity of her offer—for the present ■ value of £50,000,000 due in 1989 is "almost negligible.”