FINANCIAL ILLS

Southland Times, Issue 21577, 15 December 1931, Page 7

FINANCIAL ILLS

STRICKEN EUROPE KEY TO SITUATION IN GERMANY THE BASLE CONFERENCE (United Press Assn. —Ly Telegraph—Copyright.) London, December 13. The British Government hopes that the Young Advisory Committee at Basle with reference to Germany's capacity to pay reparations and the financiers’ inquiry at Berlin with reference to Germany’s commercial debts will conclude before Christmas, so that an international financial conference may be convened in January, merging into the Disarmament Conference. The British Government regards the finance and disarmament aspects as one problem. Prolonged investigation at Basle would be regarded here as a form of trifling with a grave situation, since it is considered that the essential facts do not require further inquiry, and that the reparations settlement must .be final and permanent. It will offer uncompromising opposition to any suggestion of a temporary expedient. Argument about the priority of political and commercial claims is regarded here as largely nonsensical. If reparations are again paid it will be because Germany’s credit has been saved. This is only accomplishable by faithful service regarding commercial debts. The British Government will furthermore be insistent on an international agreement on currency policy. There must be no risk of another breakdown of the gold standard machinery. Lastly, an honest, categoric and business-like agreement is required for the reduction of armaments.

The Basle correspondent of the British United Press says that the first week’s work of the Advisory Committee produced overwhelming evidence from the Germans that the 1932-3 Budget would show such a deficit as would prevent the payment of reparations, while the present 1931-32 Budget had been balanced only through Dr Bruening’s emergency decrees. The Germans assert that such measures will be of no avail next year. Mr J. L. Garvin, in the Observer, prophesies that the worst will be over in a few months, though the new year must open sternly for all the world. The key to the situation lies in Germany, whose hardships far exceed Britain’s. No people is worthier of the friendship of the other nations, and no Government deserves more respect than Dr Bruening’s, which has shown their true stuff and their capable heroism. President Hindenburg, without whom the position would be impossible, is as truly the father of his country as Washington. There is no fear of civil war in Germany, as a matter of life and death will maintain political stability for six months. Nothing can prevent France’s claim to the prolonged tribute of collapsing before the world is much older. The sure way out is to cancel war debts and reparations, which depends upon America. It is useless giving oxygen to Germany when she is prostrate and strangling her when she revives. WAR DEBT REVISION FIRST HINT FROM AMERICA. (Rec. 11.0 p.m.) London, December 14 The diplomatic correspondent of the Daily Telegraph points out that if America does not relieve the burden on Britain the Government may have to amend tne Balfour Note and demand a revision of the debt funding agreement. Britain’s payments from France have been reduced by the fail in sterling from 1,550,000,000 to 1,062,000,000 francs. It is obviously unfair that France should be repaying America 50 per cent, of her debt while Britain is repaying 80 per cent. Il is a matter for gratification that the first hint of revision should come from America. GERMAN CHANCELLOR POSITION BELIEVED STRONGER. (Rec. 7 p.m.) London, December 14. The Berlin correspondent of the NewsChronicle says the Chancellor, Dr Bruening, strenuously closes his eyes to the fact that the people are no longer behind mm. He is becoming an impossible politician and must surrender office to a really National Government. Despite this, however, the events of the past week are considered to have strengthened Dr. Bruening’s position and weakened Herr Hitler's. The Chancellor is recognized as the only statesman having a policy likely to save Germany from a crash. EX-KAISER’S FEARS AFRAID OF LOSING INCOME. (Rec. 12.30 p.m.) London, December 14. The Daily Herald publishes a message from Doorn stating that the ex-Kaiser, fearful of losing £200,000 interest on property in Germany valued at £15,000,000, thinks that if Herr Hitler or Communists gain power they will stop his income. Meanwhile, the ex-Kaiser is writing a book replying to Prince von Bulow as an unwilling attack on a dead man. It will be anonymous, but will really be the work of the ex-Kaiser. JAPAN’S DECISION DEPARTURE FROM GOLD STANDARD. (Rec. 7 p.m.) London, December 14. Japan’s departure from the gold standard and Mr A. W. Mellon's warning of a revision of war debts are widely discussed by financial editors as having an outstanding bearing on the present investigations into Germany's difficulties at Basle, from where it is reported the experts are hastening to complete their report before Christmas.

The Daily Herald editorially urges the cancellation of all war debts.