DEBT PROBLEM.

Wairarapa Age, 24 December 1932, Page 5

DEBT PROBLEM.

ROOSEVELT AND HOOVER FAIL TO AGREE. LITTLE ACTION TO BE TAKEN BEFORE MARCH. STAND OF PRESIDENT-ELECT. WASHINGTON, December 22. The discussions between President Hoover and the Presidentelect, Mr. F. Roosevelt, on war debts and other international problems have failed to produce any substantial agreement as to procedure, and the probability, as seen in informed circles, is strongly that little action will be taken before March 4 towards a final settlement of the present difficulties. Mr. Roosevelt, in correspondence? made public on Thursday at the White House, declined “to accept any joint responsibility” in the appointment of a commission to explore war debts and other international problems, telling President Hoover in effect that he desired a free hand after he took office on March 4. NO CO-OPERATIVE ACTION. STATEMENT BY PRESIDENT. WASHINGTON, December 22. President Hoover in a brief statement to the Press said: “Governor Roosevelt considers that it is uridesirable for him to assent to my suggestions for co-operative action on foreign problems, as outlined in my recent Message to Congress. I will respeet his wishes.” It is learned in authoritative circles that President Hoover will refrain from appointing the debts commission proposed by him. ADVISERS APPOINTED. i MR. OWEN YOUNG INCLUDED. LONDON, December 22. The first impression of disappointment at Mr. Roosevelt’s refusal to co-' operate with President Hoover was removed later by reports that Mr. Roosevelt had appointed his own advisers' in Mr. Baruch and Mr. Owen Young. This action is interpreted as a decision to take a definite line on his own responsibility as soon as he enters the White House. The choice of Mr. Young is regarded favourably as few have a better knowledge of European conditions than the author of the Young Plan.'

NO SHORTAGE OF CREDIT.

MISCONCEPTION OVER PAYMENT TO AMERICA.

LONDON, December 22. be)lying to Chamber of Commerce rcpiesentations, the Chancellor of the Exchequer (Mr. Chamberlain), emphasises the misconception that payment to America has correspondingly contracted currency. He saw no reason to anticipate a shortage of credit or the necessity for increasing the fiduciary issue. Mr. Hore Belisha (Secretary to the Treasury) in the course of a debate mentioned that .between May 11 and December 14 the banks’ gold holding had increased in an amount almost equal to the -payment to America, and the notes in circulation had increased l “ ™® same period from £358,090,000 to £372,900,009, while eash at the clear-ing-house had risen from £179,000,000 to £193,000,000, so that credit was notoriously abundant. Furthermore, instead of foreigners selling sterling in consequence of the reduction of twenty millions in notes in the banking department, they were actually buying, so that the worst anticipated had not happened. r READY TO NEGOTIATE. FRENCH GOVERNMENT’S VIEW. PARIS; December 82. The Government has announced that it is ready to negotiate with Washington on the lines of the Chamber’s vote on -December 14, with a view to a general debt settlement. The Government is grateful that a serious effort has been made at Washington since the vote to smooth over the difficulties. Referring to the internal situation, the Government insists on drastic cuts and sacrifices by ell citizens and a reorganisation of the Public Service.