UNITED STATES POSITION

Taranaki Daily News, 13 March 1933, Page 9

UNITED STATES POSITION

MORATORIUM WAS EXPECTED CURRENT TOPICS DISCUSSED. VISITOR TO NEW PLYMOUTH. “Though a great deal of publicity is being given to the stories of bank failures and financial troubles in the United States at present, the situation is not causing any real anxiety in that couptry,” stated Mr. J. M. Mouarch, a prominent Sap Francisco advertising man. who is at present visiting New PlyU “The moratorium proclaimed by President Roosevelt has been expected for some time past,” he said, “and only represents a change of policy in the nation's affairs. Since the outbreak of war in 1914 the United States have been acting as money-lenders to the whole world. We have in fact financed nearly every other nation, and in doing so have rather neglected opr own affairs. The policy has now been changed and we are proceeding tQ put opr own hopse ;n order. The effect qf fois' moratorium will be to show which banks pre fipapr cial and which are not. “Our system of banks is very different from yours. We have thousands of small private banks all over the country, and next week, though probably some ten thousand will re-open qnd carry on their business as usual, there will be many thousands foat wifi fiot be able to do so. It is the intention of the Government to fipapce all foese banks that are unable to re-open. They have plenty of asset?, but these are Pl a great many cases frozen assets. The money has been invested abroad, and one of the effects of the Hoover moratorium on war debts has been to depreciate the value pf these gssgts and to take the ready cash from the banks. The Treasury i? not go jpg to give these hanks mopey; it is going tb loan it to them in order that they' may be tided over until their assets may be realised. Mr. Roosevelt is a great man, and he is a man in whom pfir country has the fullest confidence; His move has been a bold one, but it will bear results and bear foem qpickly, Our gold reserves are enormous, anfi ip addition to these there is a huge amount being hoarded by private individuals. You ‘will have noticed that this hoarding ha? now been declared a penal offence. Hoarded gold is oply a sleeping asset; it must be brought info circulation and it will bft“The dollar is the standard of the world," continued Mr. Mouarph. “jt? credit has never stood higher; it ig WQrfh ipoye ip every coinatry foan. its standard face value; a fact which speak? volume? for foe financial stability of the State?.” Mr. Mouarch said that Great Britain stood very high ip the estimation pf people in the States, who harbppred none but friendly feelings toward foat country. British commercial morality was highly thought of,

His country placed little reliance pn the League of Nation?, which had np real power qr authority. The United States was a nation of peace, but it was a big mistake to think that fogy were -unprepared for any eventuality. According to private advices received by Mr, Mouarch foe wirele?? reports of the earthquake in California were much exaggerated. “We haye tremors .alopg the Pacific Coast al} the time," he said. "Thi? is oply a more severe one than usual.”