MORATORIUM PROPOSED

Taranaki Daily News, 28 April 1933, Page 7

MORATORIUM PROPOSED

PAYMENT OF WAR DEBTS CURRENCY DIFFICULTIES CANADA SEEKING TRADE Rec. 7.30 p.m. New York, April 26. President Roosevelt’s recommendation to Congress regarding war debts, it is understood, will give him authority to grant a moratorium on payments until after the Economic Conference. This move is authoritatively said to be conditional only upon French agreement first to meet the defaulted December 15 interest payment. > However smoothly on the. surface the political aspects of the situation moved the complete official silence of the French delegation did not hide the fact that difficulties over currencies had developed. It was felt that the further the experts delve into international monetary stabilisation the more complicated it becomes. The question of gold advances to countries whose lack of reserves precludes stabilisation unaided is regarded'as likely to complicate the situation, as the only countries capable of making such advances are the United States and France. In both cases foreign loans are not at present popular, but a more cheerful view of the situation was that a. definite settlement of political troubles, plus a debts settlement, would place France m more receptive mood for economic concessions at London. . The high point of M. Herriot’s'activities to-day was a visit to the Capitol and talks with Administration leaders there. They reassured him as to the parliamentary situation. This renewed the vigour of the fight on the Inflation Bill, tho vote on which was postponed until tomorrow. Several Administration Senators have swung over to the opposition, but the passage of the Bill is still regarded as certain. The Washington correspondent of the New York Times says that it became more apparent to-day that .Mr.- R. B. Bennett, Canadian Prime Minister, had come to Washington prepared to do some real bargaining with Mr. Roosevelt on the subject of American-Canadian trade. The Administration became extremely cautious lest the impression should get abroad that the parley with the Canadian representative would result in specific agreements not contemplated in the original plan for the Washington discussions. . . It became definitely known, too, that a relaxation of the Canadian Customs administrative methods, which have operated to an even greater extent than import duties or reduced purchasing power to close the Canadian markets to American exports, would be a specific concession asked from Mr. Bennett while he is here. It is suggested, however, that any actual agreements will be left to the ordinary offices of diplomatic intercourse or, if desirable, to the World Economic Conference. The impression prevailed here that Mr. Bennett was “ready to trade horses.” Mr. Bennett has already agreed that there is nothing in the Ottawa agreements which precluded the possibility of a trade understanding between the United States and Canada.