DEBT SITUATION

Wairarapa Daily Times, 18 January 1932, Page 5

DEBT SITUATION

BRITAIN’S OFFICIAL POLICY EXPRESSED AT PROPER TIME. Jr ess Association Electric Telegraph—Copyright RUGBY, Friday. Both official and unofficial economic experts are concentrating attention on the problems which confront the nations at the forthcoming conference at 'Lausanne. The Prime Minister lias made it known that Britain’s official policy will remain unexpressed before the “proper time and place,” which is Lausanne.

Unofficial experts continue to give their views, and the latest to do so is Mr. Maynard Keynes, who, writing in this week’s “Ncav Statesman and Nation,” argues that the conference should content itself with drafting the outlines of a charter to bo filled in six months hence in detail —that the decisions to be taken at Lausanne might take the form —

(.1) Of a promise from the Allies to make Germany within the present year a precise and definite proposal for the final determination of her liabilities together with any further concessions which they are able to offer to make her task easier and more palatable and to bring the war atmosphere to an end with a sincere offer of friendship.

(2) Of an agreement to watch the development of the economic crisis for a further six months before making this offer.

(3) With these objects in view, an extension of Germany’s moratorium to December 15 and an adjournment of the conference for six months.

“The Times” city editor says:— “Business men hold that no settlement can bo satisfactory or final which does not restore confidence in the financial stability of Germany and of other countries whose financial equilibrium has been destroyed largely by the incidence of reparation and Avar debt payments.” Sir Joshiah Stamp, speaking yesterday on world problems, emphasised the vieAV that, while reparations mattered immensely, the world had other economic ailments running concurrently, including, tariffs and armaments. With regard to the suggestions in the Press as to the possible postponement of the Lausanne Conference on Reparations until after the French Parliamentary and the German Presidential elections, it is authoritatively stated that the British Government is proceeding with its plans on the assumption that the conference will start on 'January 25 v —B.O.W.

MUST BE SOLVED. GENEVA, Saturday. A British statement emphasises that it is the Government’s conviction that the Avar debts problem must bo solved before the normal movement of capital can be restored' and world prosperity ensue. RISE IN STERLING. RUGBY, Friday.^ There was a further sharp appreciation in the value of sterling to-day. After a rise yesterday of 5} cents the Neiv York cabled rate this morning increased to 3.50 dollars. In Paris the sterling rate, after rising nearly a franc during the day, closed yesterday at 87.94 and opened this morning at 89*. The newspapers here say that the persistent sales of French francs are believed in some quarters to be associated with Indian gold shipments and the demands for sterling in New York were chiefly responsible for yesterday s steady rise.—B.O.W.

restoring price levels. GENEVA, Friday. The British Government through the League of Nations, after communicate jn<r with members of the European Union Commission,, has issued an appeal to the great gold-holding countries to take appropriate action to restore price levels throughout the world. The Government considers that watertig i Customs unions must always infringe the most-favoured-nation formula, and foresees such infringement in the *|um bers of commercial treaties to which Britain is signatory. The guarantees mentioned in the expert report do not eliminate the objections inherent m them. Tho only remedy for contracting foreign credits is action by .countries with abnormal stocks of gold.