AMERICA AS CREDITOR.

New Zealand Herald, Volume LXIX, Issue 21164, 22 April 1932, Page 9

AMERICA AS CREDITOR.

BRITAIN'S DEBT.

/ AMOUNT DUE 1932-33.

QUESTION of payment.

LAUSANNE CONFERENCE. importance OF RESULT. By TelfPraph—Press Association- Copyright. (Received April 21, 5.45 p.m.) NEW YORK. April 20. /The Washington correspondent of the \ e v York Times states that, semi-official commit on the British Budget to-day took the line that Mr. Chamberlain's outline should not: lie accepted as direct evidence that debt payments to the United States in the next financial year will be withheldJ t . is stated that any discussion would be premature until after the Lausanne Conference, especially as additions to the Budget are contemplated to deal with Britain's financial obligations not covered jn the statement submitted yesterday by the Chancellor of the Exchequer. In a responsible quarter the opinion was expressed to-day that Britain is in no position to pay the £34.300,000 due to the United States in the financial year 1953 but that France and Italy are in much stronger financial positions to meet their obligations without serious strain on their resources. It is believed that after the Lausanne Conference Britain will either make additions to her Budget to meet in full the payments due to the United States, or seek a readjustment of her debt if the reparation payments she receives are curtailed or eliminated. A rate of 4 per cent, interest is said to liave been fixed on the payments deferred under the Hoover moratorium. Also it is disclosed that the State Department has sent notice to the 14 debtor Governments that they will Be expected to sign formal legal obligations to repay over a 10 years' period the £49,200.000 postponed under the moratorium. BRITISH' POSITION. SECOND BUDGET SUGGESTED. MATTER IN ABEYANCE. British Wireless. RUGBY, April 20. Mr. Stanley Baldwin in reply to a question in the House of Commons as to the desirability of having a second Budget after the Lausanne and Ottawa Conferences said he could not go beyond the Chancellor's statement that proposals Blight have to be submitted to Parliament later to give effect to measures agreed upon at Lausanne. EXCHANGE PROBLEM. EQUALISATION PLAN. ' DEFENCE OF STERLING.

British Wireless. RUGBY. April 20. The Times points out that the exchange equalisation account for which the Chancellor of ■' the Exchequer is eeeking power to borrow up to £1.30.000,000, will not lead to an increase of debt in the ordinary sense. Mr. Chamberlain merely desires to invest paper pounds in gold or foreign gold currencies.

Lately there has been a considerable foreign demand for sterling, which is the paper pound, and its dollar value has risen from about 3 dollars 23 cents to about 3 dollars 80 cents. This demand has been partly due to the measures so effectively taken to balance the Budget, but partly also to loss of confidence in ether currencies.

The Daily Telegraph says the exchange equalisaticn account should serve as a powerful and efficient instrument for the defence of sterling in any emergency and for the maintenance of financial stability which is the root or Britain's prosperity as a great nation.

The Manchester Guardian agrees that measures to protect sterling against embarrassing fluctuations, such as those of recent weeks, is certainly needed, although they only make an early move for international co-operation on currency problems more urgent. The Daily Express says it thinks the nation which has risen so splendidly through great adversity deserved a Budget, reflecting more imagination, hope and faith.

The Mo; ■ning Post welcomes the soundness of the Budget, hub regrets the absence of iron and steel taxation concessions. It says it, thinks the Budget is notable for its constructive measure for establishing the exchange equalisation account. Hie Budget proposals had little effect °n the stock markets to-day, although disappointment at the absence of a reduction in iI )C |j CCI . j u ty reacted on brewery shares.

In an article upon the Canadian suggestion that the Ottawa Conference should Initiate and support measures for the Kiabilisation of the currencies of all !-»'itisb countries the Times says:—An international standard which could be fco hoiked as to keep commodity prices at f reasonable level, and national currencies based on that standard, are so necessary f" l ' the revival of trade throughout the J\orld that Governments arc reluctant to ihandon (he hope of a speedy restoration conditions under which both prices and '.M-Uuiige? could be stabilised at the same "®mc. Possibly at the Lausanne Confer',ro tlie discussion of reparations and Un commercial debts may lead to a discission of 11 ip monetary problem, and a Vi y may be discovered out of (he prestangle. A solution of (lie world Tiihleni would solve the problem for the , jD P lle - But if no solution should be w.p' a t Lausanne, then the Empire curn,y question will be among the most k'nt of those which (lie Empire Governw have to discuss between them- /(■^] a '' Ottawa. The difficulties of > 'be burden of whose debts to Tniir'°i S " 1C United States is made so Car'V ler lc depreciation of the bit's* n ar, d the prolonged and the f,pntl ' oVf, rsy ]„ South Africa over tlif. V- standard are but illustrations of 6 c,m rlicat 10 ns of .the problem*