LOAN TO REICHBANK

Wanganui Chronicle, Volume 74, Issue 148, 25 June 1931, Page 7

LOAN TO REICHBANK

FEDERAL RESERVE BOARD Received June 24, 9.10 p.m. WASHINGTON, June 23. While Mr Hoover devoted the day to energetic efforts to speed acceptance of his reparations programme, the Federal Reserve Board was credited with considering the granting of a substantial short-term loan to the Reiciibank through the New York Reserve Bank. The administration appears unwilling to heed the Democratic appeals for an extra congressional session, but it seems probable that if the suspension of foreign payments is to be approved before the next payment day (December 15) Congress will have to assemble some weeks prior to that date. Senator Harrison (Democrat) Las proposed a “political armistice” in order that partisan issues may bo abandoned during the congressional discussion of the Hoover programme. AUSTRALIA’S DECISION. PROPOSAL WELCOMED. CANBERRA, June 24. The Prime Minister statad: “I cordially join with the British Government in welcoming the proposals of President Hoover. They are primarily directed to relieving the debtor nations and in my opinion represent the world wide economic depression. SAVING TO AUSTRALIA. Received June 24. 8.35 p.m. CANBERRA, June 24. The Prime Minister pointed out that if Great Britain, under the Hoover plan, afforded relief to debtor nations. Australia being one, would be relieved to the extent of £3,920,000, but would forgo her share of reparations to the extent of £830,000. Thus the net gain to the Commonwealth would be £3,090,000. SYDNEY STOCK EXCHANGE. PRICES IMPROVING. SYDNEY, June 24. Prices on the Sydney Stock Exchange rose appreciably a s the result of the proposed war debt suspension. The shares of exporting concerns attracted the greatest attention. Mining stocks were active and wheat locally advanced a penny a bushel. BELGIAN COMMENT. SINISTER SUGGESTIONS. BRUSSELS, June 23. Ino Etoile Beige declares: ‘‘Germany, has shown considerable bad faith and even used blackmail. The Americans are business people, striving to save capital imprudently invested in German enterprises. * President Hoover’s plan will only postpone the reparations problem, though it may point the way to a final solution based on world cooperation. HAND OF MOSCOW. CAREFULLY LAID PLANS. MR HOOVER’S HASTE. LONIDON, June 23. Ihe Morning Post diplomatic correspondent understands that carefully laid plans by Moscow, seeking to control Germany, were the determining factor in President Hoover’s haste with his announcement. He had intended to postpone the declaration till Mr Stimson arrived in Europe, but he learned that the safety of the Brucning Cabinet was a matter of hours. rhe fall of the Germany Government would have resulted in a complete coup d’etat by the extreme Right. As foreseen by Moscow, this would have led to a financial catastrophe with a swing to the Left as the natural reaction. The Russians hoped that France would then reoccupy the Ruhr, arousing the antipathy of the whole of Germany ami giving the Soviet an excuse for an attack on Poland in order to come to the assistance of Communist Germany. President Hoover’s proposal has des troyed the Russian hupp. CANADIAN OPINION. “WILL STABILISE BUSINESS.” OTTAWA. June 23. “President Hoover’s proposal might oe the one factor that would stabilise business and start it on the road back to recovery,” Sir Henry Thornton told a special Parliamentary committee dealing with Canadian National Railwavs to-day. “Personally,” he said, “I think it is.” GERMANY ACCEPTS. WASHINGTON, June 23. Germany to-day formally accepted President Hoover’s proposal.