FURTHER CONSIDERATION

Poverty Bay Herald, Volume LIX, Issue 17950, 30 November 1932, Page 8

FURTHER CONSIDERATION

WAR DEBTS CRISIS BRITAIN’S ACUTE PROBLEM IMPORTANCE OF U.S. NOTE (British Official Wireless.) Bee. 2 p.m. RUGBY, Nov. 29. The new note to bo sent to the United States is still engaging the acute attention of Cabinet Ministers. It is generally recognised that the new note will bo one of the most important official documents issued by Britain since the end of the War. 'The utmost care is being taken to see that the British case is adequately stated in substance and correct form. At present it is not intended by the Government to undertake formal consul tations with other party leaders. Obviously there have been many aspects of the debt situation requiring the fullest and most careful consideration. It is necessary that the reasons should be stated in some detail, supported by facts of incontrovertible accuracy. According to tho newspapers, the examination of the situation being undertaken by the Ministers includes also an assessment of the effects of every method of payment, whether by gold, sterling, or dollars, and upon these and kindred questions a mass of technical data has been produced. Among many other considerations to be borne in mind is the effect upon the Lausanne agreements—whether Britain’s payments could conceivably be continued without reopening the questions on which a settlement was there reached, and whether Britain could go on paying tho United States without receiving anything from those countries which owe her money.

It is the economic consequences of inter-governmental debts which, receive most attention by the British press. The newspapers generally take the view expressed in the. News-Chronicle by Sir Walter Layton, who after pointing out the effect of the American tariff, one of tho highest in the world, upon the flow of goods declares: “There is no device known to tho science of economics, or to the art of finance, which would enable a creditor to go on collecting debts duo to it if it will not receive the goods and services of its debtors.”

Uncertainty over the war debt question is having a severely restrictive effect on the London Stock Exchange. Tn authoritative quarters, a confident view is taken that neither the movement in exchange nor the full in British funds need cause alarm, for once a decision in regard to the war debt payment has been readied, the causes which brought about the leccnt rise in high-grade investments will resume their influence.