WAR DEBT CRISIS

Poverty Bay Herald, Volume LIX, Issue 17952, 2 December 1932, Page 5

WAR DEBT CRISIS

BRITISH NOTE TO U.S. NECESSITY FOR SUSPENSION GOLD PAYMENTS POSSIBLE (Elec. Tel. Copyright—United Press Assn.) LONDON, Dec. 1.

The British war debt note has the unanimous approval of the Cabinet, but the Daily Telegraph’s political writer states that n divergence continues as to whether Britain will pay if the United States does not agree to suspension. The matter will be decided after the American reply is received. present indications are that Ministers are almost equally divided on the issue. ‘ The view is hold in well-informed quarters that;, if America maintains Iter demand, Britain will honor her obligations, and that every payment will undoubtedly bo made in gold bars. It is officially stated that the shipments of £3,000,000 in bar gold yesterday have no relation to the debt payment, but are an exchange transaction, affecting another country.

The Times says: “The British note is couched in moderate - terms. It states quite frankly that the British Government regards resumption of payments at this moment, ns’ being fraught .With serious consequences to the whole world.and not least to America. It also finally dispels any idea that Britain will decline to pay.” <

Thursday ou the Stock Exchange was n day "of gigantic monetary transactions, nearly £700,000.000 being involved in the day’s turnover. Lombard Street made most careful preparations not to disturb the flow of credit and prevent a money squeeze. The Daily Telegraph’s City editor expects that the expansion of available credit will lead to a heightened demand for the first-class investment stocks.

INTEREST IN AMERICA BRITISH NOTE RECEIVED (Received Dee. £, noon.) , NEW'YORK, Dee. 1. The New York Times’ Washington correspondent states,that the expectation there was that the British debt note would be received at the British Embassy during tho night, and deciphered in time for delivery to the State Department to-morrow. It is expected that it will bo published promptly. The cabled report that it contains 5000 words is interpreted to mean that it will present in detail reasons, addressed primarily to Congress, for a suspension and a review of debts. . Despite assurances from authoritative sources that £3,000,000 in gold being sent to New York by the Bank of England is for the account of the Continental nnd European Central Bank, an impression prevails in some quarters that the metal will be used either for the payment of the war debt or as support for sterling. This is one of the reasons assigned for to-day’s sharp covering movement of tho pound, with a resultant gain in price. Sterling closed 21 cents higher at 023 cents for cables to-day. , The Canadian dollar .gained | cent to 86 cents. , The British war debt note was delivered to Mr. 11. L. Stimson at Washington to-day. PAYMENT POSTPONED AUSTRIAN DEBT TO AMERICA (Received Dee. 2, noon.) WASHINGTON, Dec. 1. Tho Secretary of the Treasury, Mr. Ogdon Mills, announced to-day that payment on tho Austrian debt due to the United States on January 1, amounting to £53,311, would bo postponed because the trustees of the Austrian guaranteed loan oppose payment. FRENCH NOTE READY PARIS, Dec. 1. The French debt note goes to Washington to-morrow.