DEBT BURDEN

New Zealand Herald, Volume LXX, Issue 21400, 26 January 1933, Page 9

DEBT BURDEN

AMERICA WARNED CANCELLATION URGED

(CHANCELLOR'S FIGURES

TEN YEARS' ACCOUNT

EDGE OF PRECIPICE

■By 'l'elegraph—Press Association—Copyright

January 25, 30.25 p.m.)

LONDON", Jan. 24

The Chancellor of the Exchequer, Mr. Ne\ille Chamberlain, in an address to the Leeds Chamber of Commerce regarding-ihe American war debts message, reiterated that cancellation would be the best thing for the world.

However, if that view had outstripped .current American opinion a conference would be welcome whenever America was ready, so long as the settlement was final and did not involve a renewal of the claim for reparations, from Germany, because a disturbance of the Lausanne agreement would reopen old wounds.

Mr. Chamberlain said he believed the revival of confidence was justified and would continue in 1953 in the absence of an unforeseen setback. "But we have not reached tho limit of economy," said the Chancellor, "and we should still find ruaiiy things that could be done without."

Continuing the Chancellor said he desired, for the information of the American farmers and public, to submit the following war debt balance-sheet covering the period 1922-31: — PAYMENTS BY EUROPE TO UNITED / . STATES Millions of Pounds War debts 400 Interest on commercial loans . . . . 1000 Surplus of European purchases of American goods over American purchases of European goods . . 1200 2600 PAYMENTS BY UNITED STATES TO EUROPE Millions of Pounds A'merican tourists' expenditure in ./Europe and immigrants' remittances «« •• •• ■ . .. 1500 Shipments of gold . .. .. .• 100 Loans raised in United States .. 1000 2600 /These figures, said Mr. Chamberlain, showed that war debt payments had been made possible only by American loans. European debt payments could be resumed only by increased sales to America or reduced purchases from America, the former -involving a drastic reduction of American tariffs and the latter the depreciation of British currencies or higher tariffs against America. The Chancellor added: " I am not using threats when I warn America that insistence upon payments means that they are approaching the edge of a precipice and are likely to drag us down with them.

/ SPEECH FEATURED

BRITISH NEWSPAPERS EARLY REPLY TO WASHINGTON I (Received January 26, 11.5 p.m.) LONDON, Jan. 25 The importance of Mr. Chamberlain's speech on war debts is emphasised by tl/e entire press by the manner of its presentation .if not by the editorial comment.

It is expected that Britain's reply to the American invitation to a conference .will be sent to Washington to-day.

ITALY'S INTENTION

LUMP SUM PAYMENT DELEGATES TO PROPOSE I (Received January 25, 10.15 p.m.) ROME, Jan. 24 When Italy's war debt commission goes to America it will propose a lump sum payment in final settlement. The figure suggested is £20,000,000 at par.

RISE IN STERLING NEW YORK MOVEMENT OPTIMISM OVER WAR DEBTS NEW YORK, Jan. 24 In the strongest upward swing since October the pound sterling rose 3{- cents in New York to-dav, and closed at 3 dollars 39g cents for cable transfers. The Canadian dollar was l-16th cent weaker at 86£. The rise in sterling is attributed to optimism over tlie war debt situation, also to the belief that the British Exchange Equalisation Fund is temporarily withdrawn frwn the market. Presumably there has previously been a selling of sterling in on effort to hold tlie price steady.

/ ARGENTINE PROVINCE

SUSPENSION OF PAYMENTS 1 LEGISLATURE'S APPROVAL BUENOS AIRES, Jan. *24 The Chamber of Deputies of the Buenos Aires Province to-day approved the indefinite suspension of foreign debt payments by the province. These debts are the largest of any Argentine Governmental unit, except the nation itself. They approximate 140.000,000 dollais, onehalf" of which is owed to the United States.