No Isolation

Wanganui Chronicle, Volume 74, Issue 146, 23 June 1931, Page 7

No Isolation

AMERICA AND THE WORLD A NEW ZEALAND COMMENT EFFECT OF DEBT POSTPONEMENT. (Per Press Association. 1 WELLINGTON, June 22. Referring to the proposal of the President of the United States that there should be a suspension of the payment of international debts, the Prime Minis ter (Kt. Hon. G. W. Forbes) said the Government would watch, with interest, what eventuated from the proposal. So far as one could judge from the cabled report Air Hoover merely expressed an opinion and giving effect to the. idea was another matter. He assumed that the suggestion would have been submitted to Congress, but the fact, that the President made such an offer was very significant. It showed that tho people of the United States wore beginning to recognise that there could be no case of “splendid isolation.” They were interested in the economic welfare of other nations and they felt they had a responsibility to assist other countries which, after all. were their customers. The internal difficulties of the United States had been accentuated by difficulties which were being experienced in other countries, particularly Europe, and the question of finance was presenting many difficulties. He had no doubt. 1 whatever that Great Britain would ' warmly second the proposal. It was remembered that Lord Balfour, when he visited the United States, made a ’ similar proposal and the present step 1 might be the first towards giving effect ’ to the offer made at that time. If the suggestion was carried out ■ Great Britain would be relieved of a very heavy burden and New Zealand 1 would be relieved accordingly. Asked as to New Zealand’s position, . Mr Forbes replied that the Dominion would not be greatly affected by re paration payments and the amount we had had to find for funding tho debt practically balanced. Ho thought that ’ reparations payments would be a little I in our favour. * ALL EYES ON FRANCE 1 GRATEFULNESS IN GERMANY. 1 Received June 22. 10 p.m. BERLIN, June 22. i AH Germany is jubilant. Just a fortnight after “Black Satur ■ day,” when emergency decrees calling i for national sacrifices were issued, that ) Mr Hoover is Germany’s saviour is 1 the feeling everywhere. All eyes are . now on France, on which Germany is

now un rrance. <m which Germany infirmly convinced depends the success, nr failure, of Mr Hoover’s effort. Even the most dignified members of the Government can hardly conceal their jubil at ion. Nevertheless, it is suggested that the reparations holiday ought not to pre judice demands for revision of the Young Plan, since, the financial situation remains critical. Dr. Curtius says Germany receives Mr Hoover’s suggestion gratefully, even joyfully, hut nothing can bo achieved without the consent of France. GERMAN FINANCES PLIGHT OF THE REICHSBANK. Messages and opinions in practically every centre of the civilised world are pouring in to London to-night marking the worldwide importance and significance of the United States’ action. A'so, every message from Berlin over the week-end stressed the gravity of the financial situation. An additional £3,500,000 in gold and foreign securities were withdrawn from Reichsbank on Friday and the reserve is down to the statutory minimum. Dr. Luthers’ request that the Bank of England help by rediscounting £12,000,000 bills was refused. TUe Reichsbank warned tho German Government to advance tho money needed for official salaries at the end of the month. Much now depends on the attitude of France, who stands to lose to £25,000,000. The suddenness of President Hoover’s proposal has almost taken the Frenchmen’s breath away. LOSSES OF THE NATIONS RELIEF TO GERMANY. Received June 23, 1.20 a.m. LONDON, Juno 22. The Times estimates that the suspension of all war debts payments meant the net loss to Britain of £1,400,000, France £20,000,000, Italy £2,000,000 United States £48,000,000. Germany would be relieved by approximately £81,000,000. OPINION FROM CANADA. Received June 22, 7.58 p.m. OTTAWA, Juno 22. The Prime Minister (Mr Bennett) refused to comment on Air Hoover’s inter -Government debt proposal until it had been considered by the Government officially. The opinion of Sir Thomas White, of Toronto, one of Canada’s leading bankers and Canada's war-time .Minister of Finance, is that the announcement by Air Hoover marks the beginning of the end of international war debt obligations which, ho said, constitute a drag which international trade is unable to continue to withstand. AUSTRALIAN COMMENTS Received .lune 22, 10 p.m. SYDN EV, June 22. 1 Official circles declare that the Coni inonwealth will derive no benefit from ' the operation of Mr Hoover’s scheme apart from the advantage likely by an casing of the financial problems in 1 iho.-e countries with which Australia does business. Australia will, as usual, have to meet ' interest on war debts to Britain and she will have to do without £BOO,OOO annually of German reparations while the Hoover plan is in force.