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The New Zealand Railways Magazine, Volume 6, Issue 7 (February 1, 1932.)

Germany's “Can't Pay.”

Germany's “Can't Pay.”

Dr. Bruening's “Germany cannot pay reparations” statement prevented the Lausanne Conference being held in January. If Germany had merely asked for time, France might have been persuaded at that conference, by Britain and others, to grant Germany a moratorium of six months or a year in respect of reparations. But the blunt “can't pay” has for the moment deprived the French (Laval) Government of moratorium enthusiasm. The “can't pay” of Germany at the debtor end, and the “can't reduce” of America at the creditor end, have irritated France. And some of this irritation has displayed itself against the claims of the “commercial” short-term creditors of Germany. These “commercial” creditors are largely British and American banks. They supplied Germany with trading finance, as distinct from long-term obligations. Last year they gave Germany a six months' extension of credit.