TO BE PAID IN GOLD

Poverty Bay Herald, Volume LIX, Issue 17951, 1 December 1932, Page 7

TO BE PAID IN GOLD

WAE DEBT INSTALMENT BRITISH ARRANGEMENTS AMERICA’S RESPONSIBILITY (Elec. Tel. Copyright—United Press Assn.) (Receivod December I, 11 a.m.) LONDON, Nov. 50. The Cabinet meeting which examined the draiT of the second British war debts note ;to the United States was continued to-day, when the document was given final consideration before its transmission to Washington. The Cabinet meeting last night lasted for two hours. The note to America was fully drafted, but linal consideration was left until to-day. Mr. Baldwin is departing for an engagement in Glasgow this morning, and it is expected that he will refer to the subject in a speech to-night. Mr. MacDonald visited the King, and told him the contents of the note. Sir John Simon returns to Geneva on Thursday. The note which will constitute oik* of the most important official pronouncements issued since the war, is a lengthy document. It will he issued for publication in Friday’s newspapers. ' Mr Neville Chamberlain, when asked for a statement on the subject by Mr 0. La nsbury in the House of Commons, said the reply had been completed and would be transmitted to Washington forthwith. . ■ : ! " . Sir Thomas Inskip, speaking at Gosport, said the simple fact about the debt .settlement to America was that the debt was incurred at a time of necessity, and the money lent, not in the form of this or that currency, but in the form of goods. If America chose to erect a tariff wall which made it impossible for us to repay in goods what we had borrowed in goods, obviously an embarrassing situation arose. They Should, however, try to visualise the situation as it appeared to America, whose attitude on the subject of payment was readily understood. A SIMPLE ISSUE The Times expresses the view that, in osscnce, the urgent and practical issue is simply whether, in the existing circumstances, the continued payment of the debt will promote or retard the recovery of tiie world, without which neither America nor any other country can hope to regain prosperity. To that question, the Times 'believes there can bo but one answer. The Daily Herald says that the Government lias decided to ship gold to the value of £30,000,000 to New York for the purpose of paying the debt instalment if necessary. The first instalment of £3,000,000 in bar gold leaves to-day. There are not enough liners sailing to ship the whole amount before December 15. but the Bank of England has insured the whole £30,000,000. The insurers have been informed that the sum must be covered for three weeks. Naturally, the arrangements to ship the gold will not preclude the postponement of payment. Arrangements for transport insurance are being rushed so that the Government is prepared for all eventualities. The Morning Post has the best authority for staling that the Cabinet has decided that Britain will pay the American debt due on December 15, in the event of America refusing to agree to a suspension. The majority at present favor payment in gold, " which is tho last thing Wall Street wants. : The stock markots to-day presented a generally firm appearance. War loan assented was finally quoted at £97 3s Id. In the foreign exchange market, sterling displayed an uncertain tendency, tho opening rate on New York being quoted at rents and later rose sharply to 320$ cents, closing at 319-j- cents. • AUSTRALIAN COMMENT REPLY TO HOOVER ‘‘No fa/.ts have been presented to 'jU.-uiiy posipungment •" vviiat facta Joes air. jaoover .want?" asks the [Sydney Morning lierald. There is a growing vo.ujiw 1 1 intelligent, opinion m the Lautea Etutcs which is ashamed and uurmik'.tui noth at the levying of the >•■.ll' iteots and at tho disgraceful pretence that, alter 12 years, the continued levying of them is anything but the nypoerisy. i'iie American press, leaders of American universities, and oven American business men are, in increasing .'lumbers, challenging their country upon its inglorious policy. ino oe.iu reply to M". Hoover is out of his own mouth. Long before ho entered tho White House, when lie was merely a business man of experience such as Presidents of that day eagerly sought for guidance, he said in a public speech in r\ew York on February .1, 1917: “America will be rich, prosperous and weatlhy as a result of the war. We shall have made untold millions of this wealth out of the woo and swelter f E 'roue. The money which has come to us from these people is money in trust, and unless America' recognises this trust she will pay dearly and bitterly for its possession.’’ Melbourne Age: “Default is an ugly word, which has no place in the British nation’s vocabulary, and if America refuses to make the burden lighter Britain will resume it bravely, proudly. America however, should not pretend to regard as inconceivable the possibility of default on the part of some nations if they are too hard pressed. These could point to precedents of that kind to be found among some of America’s own States. It is a matter of familiar history that for more than 60 years a number of American States have been in default to tho extent of some <116.000,000, and that the bondholders, despite many attempts, have never been granted tho slightest redress. These are not pleasant memories, but America by persisting in her present demands is helping to awaken them.