The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-11-29
BRITISH FIGHT
TO PREVENT
DEBT DEFAULT
Step Considered 'IntoIer.
abIe,' and Cabinet Works
on Plea for Delay.
POUND HITS NEW LOW
Partial Payment Plan Is
Proposed by Norman,
Banking Chief.
BY. II. L. PERCY
United Press stan Correspondent

United Press stan Correspondent
LONDON NOV. 29.-Default of
& the December war debt payment to
the United States appeared out of
the question today as cabinet mem
bers completed their arguments for
postponement which are to be pre-
sented to washington.
1t was reported that Britain
might suggest payment of $3.50 900
interest and postponement of the
$3o,000000 payment on principal.
Financial quarters insisted, how
ever, that Britain had the money
to pay, and political sources said
default must be avoided to protect
British credit and empire trade.
Pound Hits New Low
The pound sterling, after opening
at $3194, dropped rapidly below
the all-time low of $317A estab-
lished Monday and touched $3.15&
after noon. Gold reached new
high at 129 shillings, 80 pence an
ounce.
Prime Minister J. Ramsay Mac
Donald was said to consider default
"intolerable" Most members of
parliament were said to hold a
similar view.
There was no definite indication
OF what the government intended
to do, however, if the United States
rejected the next postponement
plea.
Norman Advises Partial Step
The only plan advanced so far
, was that Of partial payment, cred
tied by the Laborite Daily Herald
to Montagu Norman, Governor of
the Bank of England. The Herald
said Norman suggested to Mac
Donald that Britain ask postpone
ment of the $9O,OOO,OOO principal
due.
Norman was said to have stressed
the danger of British credit in de-
fault.
The excitement in London over
the debt situation reached a climax
when King George summoned Nev-
lille Chamberlain, chancellor of the
exchequer, 20 Buckingham Palace
late Monday.
Deny Link With France
1t was reiterated in official quar-
tiers that Britain was charting her
own course, would not be a party to
any united front" in Europe, and
was not acting with France. Con-
siderable Importance was attached,
however, to the return here of Lord.
Tyrrell, the British ambassador to
Paris.
The ambassador conferred recent
~ with Premier Edouard Herriot
and other French statesmen on the
international situation"
Sir Robert Horne, former chan
cellor of the exchequer, president of
the Board of Trade, and>minister of
labor, told the United Press that
Britain could not buy as much from
the United States as she usually
does, if she continued to make war
debt payments.
Ogden Mills Called
THE last thing l want to do is
give our American friends the i'm
preston that Britain is in any way
threatening the United States" Sir
Robert said. But the effect of the
fall of sterling on British purchases
can be estimated automatically.
When the pound stands at $500,
it is clear that 100 pounds will only
buy $500 worth of goods in the
United States. But if the pound
falls to SO, 100 pounds will purchase
only $500 worth That demon
Strates that the fall of sterling must
result in fewer purchases in the
United States.
The Daily Herald used the trans
Atlantic telephone to interview
Ogden L. Mills, secretary of the
treasury and quoted him as saying
Washington expected the British
note within forty-eight hours.
The Daily Mail understood that
the note would not be sent for sew
eral days, possibly not until Thurs
day. to allow the cabinet ministers
10 study every aspect of the Situa-
ton.