ALLIED DEBT PAYMENTS

Otago Daily Times, Issue 21163, 22 October 1930, Page 9

ALLIED DEBT PAYMENTS

A REPORT FROM AMERICA. DRAFT PLAN FOR MORATORIUM, (United Press Association.) (By Electric Telegraph—Copyright.) t LONDON, October 20. (Received Oct. 21, at 10 p.m.) Considerable interest has been aroused here by The Times Washington correspondent’s report that the United States Treasury and banking leaders are discussing a draft plan for a possible moratorium on Allied debt payments to the United States. The only comment here is that Britain will continue to repay her debts without the slightest suggestion of revising her undertakings and the initiative must come from the United States, but latterly it has been significantly observed in London that the States’s vast gold reserves, coupled with the falling commodity prices, may compel her to examine the position. It is stated that Dr Scbaclit met Mr Stimson, and will later meet President Hoover and Mr Mellon, and the correspondent believes that Germany will bo forced to declare a moratorium on her conditional reparation payments. BRITISH PRESS COMMENT. LONDON, October 21. (Received Oct. 22, at 1.30 a.m.) In reference to the revival of the talk of a war debt moratorium, the Daily Telegraph says: It is not inconceivable that American banking opinion may have arrived at the conclusion that the accumulation of gold from Europe, including £80,000,000 to £90,000,000 per year in respect of war debt payments, is preventing the impoverished Continent from buying American goods, hence it is largely responsible for the growing unemployment in the United States. This situation would be eased if further imports of-gold, amounting to £150,000,000 during the next two years, could be checked.”

The Financial Times says: “ The best economists see clearly the inevitability of a rearrangement of war and reparation debts. They stand in the way of a world recovery and must bulk larger as time passes.” OPINION IN FRANCE. GERMANY SURE TO CLAIM. ■ PARIS, October 21. (Received Oct. 22, at 1.30 a.m.) There is no doubt here that Germany intends to claim a moratorium, in whicli event the question will arise of France’s payments to America. GERMANY’S PAYMENTS. BERLIN, October 21, (Received Oct. 22, at 1.30 a.m.) The newspaper Germania says that the question as to how long Germany cart continue to transfer annuities is being eagerly ventilated.