HOOVER MORATORIUM

Wanganui Chronicle, Volume 74, Issue 150, 27 June 1931, Page 7

HOOVER MORATORIUM

AN ADJUSTMENT IN SIGHT UNITED STATES YIELDING TO FRENCH WISHES WILL ALL DOMINIONS ACCEPT BRITISH OFFER? Indications are that the war debts moratorium will be brought into operation on July 1. It is stated that Mr Hoover is yielding to the French wishes and is prepared to assent to an arrangement satisfying the French Government by not jeopardising the payment of the unconditional annuities. General Smuts takes the view that South Africa is in a position to pay her debts and must do so, refusing the British Government’s generous offer. In the New Zealand Parliament yesterday, the Hon. Downie Stewart drew attention to the enormous burdens Britain was bearing, and suggested that just as America had made a gesture to Europe and Britain had made a gesture to the Dominions, the Prime Minister might see his way to inform Britain that while he was grateful for the offer, he had no wish to take advantage of it beyond the extent to which the Dominion would suffer as a result of not receiving German reparation payments.

FRENCH WISHES AMERICA WILL ASSENT. Received June 26, 11.15 p.m. WASHINGTON, June 26. President Hoover’s moratorium, be-, coming effective on July 1, is appreciably nearer. To-night a high official authority stated that Mr Hoover is yielding to the French wishes and is prepared to assent to an arrangement satisfying the French Government. That is, accepting the moratorium proposal with tho resumption of the payment, of the unconditional German . reparation annuities, which will not be jeopardised. GENERAL SMUTS’ VIEW SOUTH AFRICA SHOULD PAY. OFFER SHOULD BE REFUSED. Received June 26, 7.20 p.m. CAPETOWN, June 26. General Smuts referred to M' Hoover’s offer as “the most outstanding event in recent years.” All the world looked to America for help, and she had not failed. Referring to the British offer to the Dominions, General Smuts said it would help Australia to re-establish herself, but so far as South Africa was concerned n we are m a position to pay our debts and must do so. We have never had to accept a moratorium and it would be a climb-down if we did so now. I hope our Government, which has talked so much of South Africa first, will put South Africa still first and continue to pay its debts. The Government should thank the British Government for the generous offer, but should refuse it.’’ GOLD HOLDINGS. FRANCE AND GERMANY. i LONDON, June 25. I The weekly bank returns afford an interesting comparison of the gold holdings. The German Reichsbank has) £186,250,000, the bare legal 40 per cent., while the Bank of France has £452,000,000 equivalent to 46J per cent., the greatest in her history.

FELLING OF OPTIMISM UNITED STATES OPINION. Received June 26, 5.5 p.m. WASHINGTON, June 25. A feeling of considerable optimism regarding a discontinuation of the French opposition, to the Hoover programme prevailed in administrative circles to-day, but United States stock markets, following report of the French counter-proposals, reacted sharply, shifting from a strong opening to the weakest closing they have experienced for several days. The Federal Reserve Bank (New York) announced that it had, in company with tho banks of France and England, extended a hundred milliondoliar credit to Germany. Reports also developed in authoritative circles that Afr Hoover would soon offer a plan to aid tho bad financial situation in South America. FRENCH ATTITUDE. AN ENCOURAGING REPORT. WASHINGTON, June 25. The Secretary of State (Air H. L. Stimson) said to-day that he was encouraged in negotiations for the reparations and war debt moratorium plan as the result of two conversations he had had with the French Ambassador (AL Claudel). VISIT TO EUROPE. AIR STIMSON SAILING. WASHINGTON, June 26. The Secretary for State (Air H. L. Stimson) will sail on Saturday on the Conte Grand for Naples. He had previously planned to spend his vacation in Europe, but he may participate in negotiations to suspend the war-debt payments. AUSTRALIAN BONDS * I DEMAND ON WALL STREET. Received Juno 26, 10.20 p.m. NEW YORK, Juno 25. Stimulated by Britain’s extension of the moratorium to the colonies, Australian bonds continued their recovery in an active demand.