STABLE CREDIT

Taranaki Daily News, 25 July 1931, Page 7

STABLE CREDIT

POWERS RESCUE GERMANY WORLD-WIDE CO-OPEIRATION AMERICA’S HELP WELCOMED CLOSING OF CONFERENCE BASIS FOR FUTURE ACTION ’ British Wireless. Rugby, July 23. The seven-Power conference called to consider the European financial crisis has concluded. It recommends to the respective financial institutions that the Bank of International Settlements £20,000,000 Reichsbank credit be renewed for three months and that concerted international measures be taken with a view to maintaining the credits already extended to Germany. It is recommended that the Bank of International Settlements establish * committee to inquire, into Germany’s immediate further credit needs and to study the possibility of converting a portion of the short term loans into long term ones. The conference considers that if these measures arc effected they will provide a basis for more permanent action to follow.

At the conclusion of the conference M. Laval (France) said he wished to tell the United States representatives how much they appreciated the mixture of powerful idealism and practical sense with which it had joined in the attempt to put an end to the instability and insecurity of the European economic system.

“In the presence of the representatives of the assembled Governments I wish to give expression to my hope that the initial conversation which has just been held in Paris will be only the prelude to a series of similar meetings which will lead to a policy of Franco-German co-operation, the surest guarantee of security for the world,” said M. Laval.

Mr. H. L. Stimson (U.S.A.) said they felt they had witnessed a great event and looked forward to its progress in effectiveness.

Dr. Bruening (Germany) said he wished to associate himself with M. Laval in hoping that the American delegates would take back with them from the conference the recognition of the close inter-relation of the old and new worlds, and of Europe’s need for the moral support of the idealism of the American people. Signor Grandi and Messrs Renkin and Matsudaira joined in the hopes expressed for the results of the conference.

The British Prime Minister, Mr. MacDonald, remarked how gratifying to all had been the Paris meeting between the French, and Germans, and referred to the growing understanding and cooperation with America. He hoped that the conference decisions would re-estab-lish German credit.

Interest in to-night’s papers is about equally divided regarding the decisions of the conference, and the increase this morning of the Bank of England dis-' count rate from 2J per cent, to 3J per cent, with a view to checking the recent heavy withdrawals of gold. Some space is given to the postponed visit by the Prime Minister and Foreign Secretary to Berlin, which will now take place at the beginning of next week. The committee of experts, which assembled in London last week, decided to proceed with the elaboration of the details for giving effect to the Hoover plan. They will meet to-morrow morning.

President Hoover said to-day that the London conference had laid sound foundations fdr the establishment of stability in Germany, says a Washington message, x