GOLD FLOW TO AMERICA

Taranaki Daily News, 23 October 1930, Page 9

GOLD FLOW TO AMERICA

EFFECTS OF DEBT PAYMENT

DISCUSSION OF MORATORIUM

REARRANGEMENT EXPECTED

EUROPE’S IMPOVERISHMENT

By Telegraph—Press Assn.—Copyright. London, October 21. In reference to the revival of talk of a war debt moratorium, the Daily Telegraph says it is not inconceivable that American banking opinion may have arrived at the conclusion that the accumulation of gold from Europe, includ--ing £80,000,000 to £90,000,000 a year in respect of war debt payments, is preventing the impoverished Continent from buying American goods, hence it is largely responsible for the growing unemployment in the United States. This situation would be eased if a further import of gold, amounting to £150,000,000 during the next two years, could be checked.

The Friancial Times says the best economists see clearly the inevitability of a re-arrangement of the war and reparation debts. They stand in the way of world recovery aud must bulk larger as time passes. , A Paris message states that there is no doubt there that Germany intends to claim a moratorium, in which event the question will arise of France’s payments to America.

In Berlin the newspaper Germania says the question as to how long Germany can continue to transfer annuities is being eagerly ventilated.

FRANCE OPENS NEGOTIATIONS. AMBASSADOR GOES TO STATES. Rec. 11.15 p.m. London, Oct. 22. Talk of war debt invariably leads to a crop of denials, yet the subject is so vital to the overburdened peoples of Europe, especially overtaxed Britain, that a mere whisper is sufficient to evoke columns of speculation. A lengthy message is published from the Daily Express’ special correspondent at Paris, Mr. H. J. Greenwell, who understands that Mr. Walter F. Edge, United States Ambassador to France, has gone to Washington specially to report to President Hoover concerning the reception of a tentative proposal to grant European debtors a five years’ moratorium. ' '. Mr. Greenwell records the fact that the whole of the Conservative Press of France is in a state of commotion because it is understood the United wants an assurance before granting the moratorium .that France will not spend the money otherwise due to America on armaments. .

Rome is also being sounded regarding Its shipbuilding programme. Mr. Greenwell adds that it is not a question of sentiment; it is purely a business matter with the United States. A moratorium would benefit the United States of America as much as Europe. Gerinany will certainly a moratorium from the reparations payment and France, fears if once she is ..permitted to withhold payment she may never start again.