Reduced Payments

Wanganui Chronicle, Volume 76, Issue 301, 21 December 1933, Page 7

Reduced Payments

GERMAN LOANS DECISION COMMENT BY THE TIMES [ Britinh Official Wireless I RUGBY. Doc. 19. The Central Committee of the Keichs bank announced yesterday a curtail inent during the first six months of next year of cash transfers in respect, to interest payments on Germany’s medium and long-term debt from 50 to 30 per cent. Interest on the Dawes and Young loans will continue to be transferred in full, but no amortisation payments will be transferred except on the Dawes loan. The Times, commenting on this further default, says: “Altogether the impression left by Dr. Schacht’s handling of the debt question is anything but favourable. It is idie to pretend that the Reichs-bank and the Government are powerless to effect any increase in the available supply of foreign exchange, for those could without question be stimulated by appropriate measures. Indeed it seems quite clear if they really desired to do so, Dr. Schacht and the Government could very well continue payments at least on the present scale without inflicting any hardship upon the German people. Throughout the negotiations Dr. Schacht displayeed a high-handed disregard for the legitimate claims of foreign creditors, which it is diffi :ult to reconcile with perfect good faith, and his preferential treatment f the Swiss and Dutch claims in particular introduced arbitral' discrimination which no amount of sophistry can justify. The Morning Post says the view is strongly held in this country that no debtor has a right to discriminate in his arbitrary fashion between his creditors. The British Government has already addressed a remonstrance to Berlin without apparent result, but they ought not to let the matter drop.