DIFFICULTIES IN THE WAY

Wanganui Chronicle, Volume 74, Issue 147, 24 June 1931, Page 7

DIFFICULTIES IN THE WAY

MR HOOVERS GENEROUS OFFER AWKWARD POINTS RAISED IN THREE COUNTRIES FRANCE UNEASY OVER UNCONDITIONAL PAYMENTS MINISTERS WORKING OUT COUNTERPROPOSALS (By Telegraph—Press Association—Copyright Received .Tune 23,11.10 p.m. LONDON, June 23. While there is not. the slightest diminution in the appreciation of-Air Hoover’s offer, awkward points have been raised in three countries—France, Belgium and Italy, while the position of the Dominions is still regarded as not clear . France is concerned about the unconditional portion of the German payments. Belgium is uneasy because the net balance from German reparations, after payment of the debt to America, will amount to nearly £3,500,000, the loss of which would gravely affect the Budget. Italy’s approval is unqualified, but nevertheless the feeling in Fascist circles is that Germany must give up the idea of a union with Austria. The Daily Telegraph says that the postponement of the unconditional annuities due to France would constitute a contravention of the Young Plan as settled at the international conference. The Ministers M. Laval and M. Flandin have all daylong been working out counter-proposals, which are being forwarded to Washington. The general view on the London Stock Exchange is that a year’s moratorium is not sufficient, yet it is a step in the right direction. An important factor in Mr Mellon’s inquiries in London was that he asked whether Britain would continue payments to America despite a German default, and was informed that Britain would certainly stand by the Balfour Note, while the city informed him the British taxpayer would not consent to further burdens to meet a contingency for which Britain 'was in no wise responsible.

GERMAN TAXPAYERS j i OFFER AFFORDS NO RELIEF. i DR. BRUENING’B .STATEMENT, Received June 23, 9.5. p.m. BERLIN, June 22. Dr. Bruening, in the first statement since Mr Hoover’s offer was published, declared that it afforded no relief to Germany’s taxpayers or unemployed, as the reparations holiday is froui July 1931 to July 1932, whereas the German Budget was from April to April. Therefore. there would be only three-quar-ters of saving. The benefit to the current financial year would be absorbed by measures far surpassing the recent financial decrees, and to put Germany s house in order Germany intended to use the breathing space to secure a lasting revision of the Young 1 lan. He hoped the world was now convinced that the problem should be pursued to a solution. STATEMENT IN COMMONS. GOVERNMENT’S SUPPORT. [British Official Wireless.] RUGBY, June 22. President Hoover’s proposal that fol one year as from July 1 there shall be a postponement of all payments of all war debts and reparations, both principal and interest, which was issued in Washington on Saturday night was the subject of a brief statement in the House of Commons. Replying to a question put by Mr Baldwin, the Prime. Minister said: - ‘His Majesty’s Government of the United Kingdom cordially welcome the striking declaration made by President Hoover. For their part the Government desire at once to state that they subscribe wholeheartedly to the principle of the proposal and are prepared to co-operate in the elaboration of details with a view to giving it practical effect without delay. The House does not expect me to say more at the present stage. Mr Baldwin, on behalf of the Conservatives. associated himself with the words of the Prime Minister. Mr Lloyd George expressed similar sentiments on behalf of the Liberals. The new situation brought about by the American offer will make the visit of Mr Henderson to Paris next month of considerable importance. Mr Hen derson proposes to be in Paris on July 15 and 16, and will take the opportunity of discussing first hand with members of the French Government the proposals and principles which will have been decided upon in July. Mr Henderson proposes to leave Paris on the night of July 16 for Berlin where he will join Mr MacDonald in returning the recent visit of Dr. Bruening and Dr. Curtius to England. GERMAN OPINION. OFFER JUST IN TIME. LONDON, June 22. Germany regards President Hoover s proposal as coming, not at the eleventh hour, but at five minutes to twelve, saving the country from the worst crisis since 1923. Senator Borah, formerly a bitter foe of debt revision, interviewed over the Atlantic telephone by' the Daily Mail, approved of the proposal. He said that it did not need special Congressional action. He did not anticipate that the moratorium would be prolonged beyond a year. Senator Borah added that President Hoover had already received the approval of some of the Allied Powers. The Times Paris correspondent says that it is believed that the proposal will apply to both categories of the Young Plan payments, excepting the unconditional annuities already commercialised. This means that France must renounce a large part of the reparations payment already budgeted. GREATER CONFIDENCE. * ‘ W(JRLD ’8 OPPORT UNIT Y. ’ ’ VANCOUVER. June 22. The Stock Exchange produced strong •ice advances in response to President borer’s debt announcement.

ECONOMIC RECOVERY. MONTREAL, June 22. Mr E. W. Betty, of the Canadian Pacific Railway', declared that President Hoover’s action will afford a striking opportunity for world economic recov ery. NEW YORK STOCK MARKET. STRONG UPWARD MOVE. NEW YORK, June 22. The stock market re-acted violently upward after the statement by President Hoover on Monday. The early gains were two to fifteen dollars per share. Late profit-taking wiped out some of the gains, and the market, closed two to ten points stronger. The commodity market was stronger cotton scoring almost three dollars per bale advance. LONDON STOCK EXCHANGE. BIG RISE IN PRICES. LONDON, Juno 22. Influenced by President Hoover’s proposals the Stock Exchange is strong and active and prices of all sections are marked up, including Australians. There arc big rises in many industrials and foreign bonds, the most notable being eights points in German 5J per cents. MARKETS RESPOND. NEW LIFE AFTER STAGNATION. Received Juno 23, 5.5 p.m. LONDON, June 22. Mr Hoover’s plan has caused brisk , activity, not only/On the Stock Exchange, but in all the commodity markets, many' of which have been galvanised into new life after long periods of stagnation and despondency. Al) metals rose substantially, tin by 75s a ton, copper 535, lead 2ls 3d, zinc 25s and silver 15s to 16s an ounce. Even rubber rose a farthing a pound. On the Stock Exchange gilt-edged and Australians shared in the improvement. Chief advances were: Commonwealth sixes to £B3, fives to £7O 10s, Victorian threes to £47 10s, three and a-hafves to £55, New South Wales 5j to £77, sixes to £65, New Zealand four and ahalves to £9l 2s 6d. Bradford reports slightly better quotations. BERLIN BOURSE. SENSATION A L RECOVERY. BERLIN, June 22. The Bourse opened sensationally, showing a rise of 30 per cent, in some shares over Saturday’s prices, even the general public buying. SPEEDY ACCEPTANCE. MR STIMSON’S STATEMENT. WASHINGTON, Juno 22. Secretary Stimson to-day stated that an international conference was out of the question. Jf President Hoover’s debt moratorium proposal was to have the desired effect, he declared, speedy acceptance of the proposal by Germany’s creditor nations was necessary and there was not time for international discussion. WELCOMED IN INDIA “THIN END OF WEDGE” Received Juno 23, 11.20 p.m. CALCUTTA, June 23. Business men in India generally have given a warm welcome to Air Hoovei’s proposal for a moratorium, which has touched the imagination of the public at a moment when the financial and economic situation is at its glonnest. J The press welcomes the proposal as a substantial contribution to the restoration of the world’s propcrity. “In

a day as dark as this the proposal is a candle which throws a far beam.’' Regarding Air Hoover’s plan as the thin edge of the wedge for the genera,cancellation of war debts, the Calcutta Statesman expresses the opinion: “If this year’s moratorium dues bring sensible relief, America will have to face what the world will call tho Io£»w of facts.” THE SILVER PROBLEM Received June 23, 11.50 p.m. WASHINGTON, June 23. A new p an to deal with tho silver problem will be laid before the President, Mr Hoover, on Tuesday, by Mr Smoot, chairman of the Senate Finance Committee. Air Smoot has not. revealed the nature of his proposal. Mr Hoover’s action on war debts and reparations has brought renewed demands for steps to solve the sih'er problem from those who seek an internation silver conference.