' DEFAULTING NATIONS.

Waikato Times, Volume 114, Issue 19053, 18 September 1933, Page 8

' DEFAULTING NATIONS.

ABUSE OF CREDIT. fPONTRAOT OBLIGATIONS IGNORED GERMANY CRITICISED. Cnlted Press Assn.—Elec. Tel. Copyright. (Received Sept. 18, 2.30 p.m.) LONDON, Sept. 17. Sir Arthur M. Samuel,' Conservative member of. the House of Commons for Farnham, Surrey,in the course of an address to the Secretaries’ Association, said: "It is unlikely, after the experience in regard to the transfer of the moratorium, that Germany will be able to raise money again in Britain, France or America during our lifetime. She must be left to her own resources and her own ■The speaker added that unjustifiable debts incurred by borrowers who were not worthy of credit were the principal cause -of the partial collapse of the world’s economic structure. Abuse of credit amounted to vulgar dishonesty. No British money should be lent to foreigners who had proved themselves unworthy oi credit. , , ~ * . Germany’s cold and selfish disregard of her contractual obligation had shocked all honest men. Her arrogant trampling upon the rights of others was characteristic of the Prussian mentality that caused the Great War. Her transfer of the moratorium constituted one of the worst cases of debt default/Rumania’s default was almost as bad. Untold millions of British savings had been lost in South America. Loanmongers, pulling sentimental hysteria and ballyhoo, had enabled unjustified loans to be floated in London for the benefit of borrowers who were not worthy of credit. Some overseas borrowers ultimately would receive British goods as gifts. The Government had a publio duty, namely, to chec> indiscriminate public lending and protect investors’ savings.