DEBT MORATORIUM.

Star (Christchurch), Volume XLIV, Issue 190, 12 August 1931, Page 1

DEBT MORATORIUM.

Arrangements for Payment by Debtor Nations. GRATIFICATION IN AMERICA United Press Assn.—By Electric Telegraph—Copyright. (Received August 12, 11 a.m.) WASHINGTON, August 11 The State Department announced to-day that under the agreement reached in London to make the Hoover Debt Moratorium effective, all suspended payments would become unconditional obligations of the debtor governments, to be repaid over a period of ten years, beginning on July 1, 1933, with interest at 3 per cent from that date. The repayments will be made in ten eq al instalments, each divided into twelve monthly payments, including principal and interest. The statement added: “Our Government is gratified at the progress which has been made giving practical effect to the suspension of the debt repayment programme as suggested by President Hoover on June 20.”

President Hoover announced an offer on June 20 to the world for one year’s suspension of inter-Governmental debts He said: “The American Government proposes the postponement during one year of all payments of inter-Govern-mental debts, reparations, and relief debts, both principal and interest, but not including the obligations of Governments held by private parties.” The announcement was given after the receipt of informal reports from European Governments. “ Acceptance of this proposal has meant sacrifices by the American people and by the former Allied Governments who are, with all others, suffering from the world-wide depression and deficits in governmental budgets,’ said President Hoover on July 20 “ The economic load which has been most seriously oppressing the peoples of Germany and Central Europe will be immensely lightened. While the plan particularly aimed to give economic relief, yet economic relief means swinging men’s minds from fear to confidence, swinging nations from apprehension of disorder and government collapse to hope and confidence of the future. It means also tangible aid to unemployment and agriculture. The almost unanimous support the plan has met in the United States is again a profound evidence of the sincere humanity of the American people.” After a conference of experts in London, arrangements were made to give effect to the scheme, difficulties raised by France being successfully overcome.