GERMAN MORATORIUM

Otago Daily Times, Issue 21976, 10 June 1933, Page 11

GERMAN MORATORIUM

A TEMPORARY MEASURE OBLIGATIONS TO BE MET (United Press Association.) (By Electric Telegraph—Copyright.) BERLIN, June 8. The Government has declared a general moratorium on all credits granted Germany prior to July 1, 1931, because the banking crisis that month many’s present financial position. Transfers will be made as far as possible on credits granted after that date. The existing standstill agreements at present are not affected, but Dr Schacht hopes to obtain alleviation during the forthcoming negotiations in London. The Dawes and Young Plans have been suspended, Private debtors must continue payments into a special conversion fund, which the Reichsbank promises to convert into foreign currencies whenever possible. ‘ Dr Schacht, in a letter to the Government, emphasises that the moratorium is only temportary, Germany intends to meet her obligations in future. AN INTERNATIONAL PROBLEM STATEMENT BY DR SCHACHT. BERLIN, June 8. The moratorium will begin on July 1. Dr Schacht stated that the delay would enable modifications to be discussed with their creditors in London on June 13, also the World Conference, would be able to seek amelioration of the effects of the stoppage. He hoped that the world would receive the news without anger and recognise that it was an international problem, remembering that Germany had to earn sufficient foreign currencies to enable her to j3ay her debts.

LONDON PREPARED A CRISIS AVOIDED. I LONDON, June 9. (Received June 9, at 8.20 p.m.) The city met ,the German moratorium unconcernedly. All preparations had been made, and there was no crisis. Those private banks which are heavily involved with large holdings of securities will be adequately protected. The Financial News says: “Dealings in the Dawes and Young loan opened' today under the shadow of default. Interruption of the service leaves holders with a serious grievance.”