GOLD PAYMENT

Southland Times, Issue 21897, 24 December 1932, Page 5

GOLD PAYMENT

DEBT TO AMERICA SHORTAGE OF CREDIT UNLIKELY DEMAND FOR STERLING (United Press Assn. —Telegraph Copyright.) London, December 22. Replying to the Chamber of Commerce’s representations, Mr Neville Chamberlain, Chancellor of the Exchequer, emphasized the misconception that the payment to America correspondingly contracted the currency. He saw no reason to anticipate a shortage of credit or the necessity of increasing the fiduciary issue. Mr L. Hore-Belisha in the House of Commons debate mentioned that between May 11 and December 14 the banks’ gold holdings had increased by an amount almost equal to the payment _to America. Notes in circulation had increased in the same period from £358,000,000 to £372,000,000 and cash at the clearing house from £179,000,000 to £193,000,000, so that credit was notoriously abundant. Furthermore, instead of foreigners selling sterling in consequence of the reduction of £20,000,000 in notes in the Banking Department, they were actually buying. So the worst anticipated had not happened.

The London Chamber of Commerce wrote to Mr MacDonald urging that the fiduciary issue be raised in order to offset the payment in gold to the United States. Mr Chamberlain, dealing with the suggestions on this line, explained during the House of Commons debate that the fiduciary issue could only be utilized by the Treasury on representation from the Bank of England. No such representation had been made, and he considered it essential not to give the impression abroad that they were careless about their gold reserves or wanted to conceal anything that was taking place. MR ROOSEVELT DESIRE FOR FREE HAND. Washington, December 22. Discussions between Mr Hoover and Mr Roosevelt on war debts and other international problems have failed to produce any substantial agreement as to the procedure, and official circles consider it strongly probable that little action can be taken before March 4 towards a final settlement of the present difficulties. Mr Roosevelt, in correspondence made public to-day at the White House, declined “to accept any joint responsibility” in the appointment of a commission to explore the war debts and other international problems, telling Mr Hoover, in effect, that he wishes a free hand after he takes office on March 4. WISHES RESPECTED STATEMENT BY MR HOOVER. (Rec. 5.5 p.m.) Washington, Dec. 22. The President, in a brief statement to the Press, said: “Mr Roosevelt considers it is undesirable for him to assent to my suggestion for co-operative action on foreign problems outlined in my recent message to Congress. I will respect his wishes.” It is learned in authoritative circles that Mr Hoover will refrain from appointing a debts commission as proposed by him. PERFECTLY NATURAL MR ROOSEVELT’S ATTITUDE. (Rec. 1.10 a.m.) London, December 23. The Times thinks that Mr Roosevelt’s attitude is perfectly natural, but stresses that there will be little time between March and June to reach a solution of a complicated problem. This constitutional interregnum may prove a calamity for the whole world. It prevents preparation for the necessary negotiations. ADVISORS APPOINTED MR ROOSEVELT’S MOVE. London, December 22. The first impression of disappointment at Mr Roosevelt’s refusal to cooperate with Mr Hoover was removed later by reports that the former had appointed his own advisers,_ Messrs Barugh and Young. This action is interpreted as a decision to take, a definite line on his own responsibility as soon as he enters the White House. The choice of Mr Young is regarded favourably, as few have a better knowledge of European conditions than the author of the Young Plan. FRENCH GOVERNMENT READY TO NEGOTIATE. Paris, December 22. The Government has announced that it is ready to negotiate with Washington on the lines of the Chambers vote with a view to a general debt settlement. It is grateful that a serious effort has been made at Washington since the vote to smooth out the difficulties. , .. .. Referring to the internal situation, the Government insists on drastic cuts and sacrifices on the part of all citizens and the reorganization of the Public Service. NEW ZEALAND’S OFFER BRITAIN HOLDS TO ARGEEMENT. Dunedin, December 23. According to a statement made tonight by the Minister of Finance, the Hon. W. Downie Stewart, the British Government has not accepted the offer of the New Zealand Government to renew this year its war debt payments to the United Kingdom. . Mr Stewarts’ statement is as fol--10“ With reference to the offer of the Government of New Zealand to the Government of the United Kingdom to renew the payment of its obligations under the war debts agreement with the United Kingdom, the New Zealand Government has received a reply from Great Britain expressing warm appreciation of the generous feeling which prompted New Zealand’s offer. After explaining the effect of the Lausanne Agreement on the general position the British Government states that it does not wish to withdraw or qualify its offer of suspension made to New Zealand and other dominions at the tune of the Lausanne Agreement.