THE MORATORIUM

Southland Times, Issue 21431, 27 June 1931, Page 5

THE MORATORIUM

MR HOOVER’S OFFER Agreement with France expected OPTIMISM AT WASHINGTON (United Press Assn.—By Telegraph—Copyright.) (Rec. 7.45 p.m.) Washington, June 26, President Hoover’s moratorium becoming effective on July .1 is appreciably nearer to-night. A high official authority stated that Mr Hoover is yielding to French wishes and is prepared to assent to an arrangement satisfying the French Government that in accepting the moratorium proposal the payment of unconditional German reparation annuities will not be jeopardized. A later message states that a feeling ot considerable optimism regarding a discontinuation of French opposition to Mr Hoover’s programme prevailed in administrative circles to-day, but the United States stock markets, following reports of French counter proposals, reacted sharply, shifting from a strong opening to the weakest closing they have experienced for several days. The Federal Reserve Bank, New York, announced that, it had, in company with the Bank of France and the Bank of England, extended a credit of 100,000,000 dollars to Germany. Reports also developed in authoritative circles that Mr Hoover would soon offer a plan to aid the bad financial situation in South America. FRENCH RESERVATION MR MELLON VISITS PARIS. (British Official Wireless.) Rugby, June 25. The Secretary of the United States Treasury, Mr A. W. Mellon, left for Paris to-day. He declined to discuss the purpose of his mission, but the newspapers anticipate that he will discuss with the authorities details in connection with the French reservation to President Hoover’s proposals, which are due to take effect next Wednesday. Mr Mellon may visit Berlin after Paris. The general acceptance in principle of Mr Hoover’s proposals has - had a tonic effect on the business community. There was an optimistic tone on the London Stock Exchange to-day, when active trading in British funds and increased public inquiry for industrial shares were features of the market. BRIGHT PROSPECTS NEGOTIATIONS WITH FRANCE. Washington, June 25. The Secretary of State, Mr H. L. Stimson, said to-day that he was encouraged in the negotiations for the reparations and war debt moratorium plan as a result of two conversations he has had with the French Ambassador, M. Claudel. Mr Stimson will sail on Saturday on the Conte Grande for Naples. He had previously planned to spend a vacation in Europe, but he may now participate in the negotiations to suspend the war debt payments. .7 SAVING TO AUSTRALIA CREDIT WILL BE IMPROVED. (Rec. 7.45 p.m.) London, June 26. The Morning Post says that the British war debts concession to the dominions, together with the previous sinking fund remission, should mean a saving of Australian expenditure and remittance abroad of £4,500,000 which, together with contemplated economies and a saving of .interest on internal debt, should materially aid the Budget position as well as Australian credit. AUSTRALIAN BONDS DEMAND IN NEW YORK. © (Rec. 7.50 p.m.) New York, June 25. Stimulated by Britain’s extension of the moratorium to the colonies, Australian bonds continued their recovery and are in active demand. OUTSTANDING EVENT COMMENT BY GENERAL SMUTS. (Rec. 7 p.m.) Cape Town, June 26. General Smuts referred to Mr Hoover’s offer as the most outstanding event in recent years. All the world looked to America for help, he said, and she had not failed. Referring to the British offer to the dominions, General Smuts said: “It will help Australia to re-establish herself, but so far as South Africa is concerned we are in a position to pay our debts and must do so. We have never had to accept a moratorium, and it would be a climb down if we did; so now I hope our Government, which has talked so much of South Africa first, will put South Africa still first and continue to pay its debts. The Government should thank the British Government for its generous offer, but should refuse it.”