A Year's Grace.

At time of writing, France has made no overt sign of compromise, but the “commercial creditors” are reported to have extended the credit-extension (“standstill”) agreement for a year. If so, this will be the first substantial step in 1932 to a substantial creditor-compromise. Will Germany receive, with regard to reparations, as much consideration as is proposed in connection with the “commercial debts”? This intricate question has been stated at some length, because the world's principal (though not only) malady is debt. Debt is paralysing trade. The new “commercial” credit extension covers about 268 millions, owed by Germany. But it is only a part of the world's debt burden, of which New Zealand, like other countries, is a victim.