HC Deb 24 April 1934 vol 288 cc1521-2

asked the Secretary of State for Dominion Affairs if he will make representations to the Government of the Australian Commonwealth on behalf of British investors, who hold some £700,000,000 of Commonwealth securities, against the action of the Australian Government in repudiating its obligation to pay the interest and principal of the 4½ per cent. Australian Government loan issued in New York in 1928, with gold clause, in legal tender of the country where the bonds are payable to the full equivalent current value of the gold expressed therein as interpreted by the legal decision in another place in the case of Feist v. Société Intercommunale Beige d'Electricité?

The Secretary of STATE for DOMINION AFFAIRS (Mr. J. H. Thomas)

The loan referred to by my hon. and gallant Friend, having been issued in New York, would appear to be governed by the law of the United States of America. I do not therefore think that the decision referred to in the question is relevant nor that the question of making the representations suggested arises.


May I ask whether this is not a further example of the failure of the Gold Standard system?