MILLIONS OF DEBT REPAID

Timaru Herald, Volume CXXXVI, Issue 19093, 27 January 1932, Page 7

MILLIONS OF DEBT REPAID

BRITAIN'S AMAZING STRENGTH “BEST NEWS FOR MANY MONTHS.” Uulted Press Association—By Electric Telegraph—Copyright LONDON, January 25. The Bank of England announces it is repaying on January 31, several credits of £15,000.000 each, the balance of £50,000,000 advanced by the Federal Reserve Bank of the United States and the Bank of France in August, to assist the sterling exchange. The repayment does not involve a reduction of the Bank's gold reserve, or an increase in the fiduciary issue. Press Comment. “The best news the market has had for months.” says “The Times” in a leader, referring to the repayments of credits. It is a notable sign of the Bank of England’s strength and it demonstrates confidence in its resources, especially when many banks throughout the world are gravely embarrassed. It will increase British financial prestige and prove the pound's ability to maintain its position. The Indian gold arrivals, which have now reached £30.000,000, are indirectly helpful. GERMANY’S DEBTS. " STAND-STILL AGREEMENT ” EXTENDED. British Official Wireless RUGBY, January 25. Newspapers welcome the announcement that negotiations for the extension of the so-called “stand-still agreement” over Germany’s foreign shortterm liabilities have reached a successful conclusion, after weeks of arduous discussion. The agreement was initialled at Berlin on Saturday by the negotiating committee, prolonging, with certain modifications, the existing agreement which expires at the end of February, for a further twelve months. Tire agreement is to be submitted to the various national committees for approval. GIGANTIC CONVERSION LOAN j MOOTED. BIG SAVINGS IN INTEREST ANTICIPATED. United Press Association—By Electric T el egraph—Copy rigli t (Received January 26, midnight). LONDON, January 26. The “Daily Express” reports that the City understands that a gigantic conversion scheme for the whole of the national debt is under consideration. The greater part of the savings in interest payments, are equivalent to 1/6 in the £ in income tax, would be passed on to the taxpayer. A similar plan was carried out in Australia where Government stocks stand at a higher level to-day than before the Conversion.