Evening star., 1932-12-14
BRITISH PLANS DETAILED.
Chamberlain Analyzes Government Debt
Policy in House Of Commons

chamberlain AnalyIes Government Debt
Policy in House Of Commons.
LONDON. December IA tR.-Neyille
Chamberlain told the House of Com
mons today that payment of England S
s95 $50 900 debt installment will be
made in gold in New York tomorrow.
or by arrangement between the Federal
Reserve Bank and the Bank Of England.
The chancellor of the exchequer made
this statement in the course Of an ex-
position OF the governments debt policy
IN the House OF Commons The mem
bers cheered his announcement.
The Federal Reserve Bank" he said.
VIII provide tomorrow the amount Of
gold required by the United States Gov
ernment. and the Bank Of England will
earmark In London simultaneously for
the account OF the Federal Reserve Bank
an equivalent amount Of gold
This gold will be shipped later by
the Bank of England as required.
This will involve budgetary deficit
equivalent to f29, 500. 600"
Alternatives Described.
Dealing directly with nomorrow's pay
ment, MIR. Chamberlain described the
various alternatives which the govern
ment faced
The government was unable to con-
template default" he said
Default by the British government.
on sum which they could not truth
fully say they were unable to pay would
rebound all around the world It nigh.
nave been taken as justification for
other defaults
1t would have administered q shock
| to the moral sense of our people
1t might have had profound effect
on the whole conception Of the meaning
Of obligation, public or private. with
consequences which could only be
That course could not be conten-
plated"
Wants Final Settlement.
The chancellor laid great emphasis
on passage in the last British note
which insisted that tomorrow's payment
must not be taken as implying . revival
OF the system In operation before the
Hoover moratorium.
For more than an hour he held the
o. the whole House.
I'VE are earnestly desirous Of making
a fnal and satisfactory settlement with
the United States which, it might be
hoped. would benefit not only our two
countries, but the whole world" he said.
1T is important that we do all We
possibly can to save the Lausanne agree
ment. Upon the preservation of that
settlement must depend the continuance
Of harmony among European nations
Upon that settlement also largely de-
pends the stability and security Of the
financial situation in large part Of
the world"
| A call for the earliest possible beginning
of conversations between Great Britain
| and the United States regarding re-
vision of the war debts agreement ap-
peared today in newspaper comments.
There was talk Of q possible visit by
British ministers to Washington early
! N the new year to participate in the
| desired conversations.
There was speculation tn political
Hobbies that President-elect Roosevelt
might cooperate with President Hoo
yer in the hopedfor conversations.
Chamberlain, Stanley Baldwin, for
mer premier and lord president of the
council in the Macdonald cabinet, and
Walter Runciman. president of the
Board of Trade. were selected by po-
/ 1itical gossips as the ikeliest repre-
sentatives of Great Britain if the con-
versatiofls were held.