A FLOOD OF GOLD

Otago Daily Times, Issue 19258, 23 August 1924, Page 10

A FLOOD OF GOLD

PAYING BRITAIN’S WAR DEBT. UNITED STATES EMBARRASSED. Press Association —By Telegraph—Copyright. WASHINGTON, August 21. The flood of British gold which is expected to come to the United States is worrying the Treasury officials and giving concern to Britain. Tl.e British are under obligation to pay 90,000,000 dollars this vear, and the present indication is that it will be paid in gold. Next year about 160.000,000 dollars aro to be paid. Tho British can pay in gold or in United States securities, but as the latter are above par the natural course is to pay in gold, and the prospect is that there will be such an influx of gold as to be burdensome to the United States, while draining Europe of its gold supply.—Reuter.

The third instalment, amounting to 68,700,000 dollars, of interest on the British war debt to the United States, was paid on June 16. Tho first payment of interest under tlx© agreement concluded early in 1923, was made on Juno 15 of last year, and the second payment was made on December 15, the semi-annual dates named in tho terms of the settlement. On the occasion of tho second payment of interest practically the whole of the amount due was paid in Liberty Bonds, less than 200 dollars being in cash. An instalment was also repaid on December 15 of tho 4,604,000,000 dollars of the principal. The major portion of the third instalment was, however, paid by cheque, funds necessary to meet it having been, provided by gold shipments from Britain. The balance was paid in the form of United States Treasury certificates of indebtedness. The amount due to tho United States is, at the par rate of exchange, about £33,000,000 per annum tor tho first ten years, after which it rises to about £38,000,000 per annum.