Nations Must Live

The state deepest bogged last week in a fiscal morass was Austria (see p. 23). Other governments painfully pinched for money by Depression were those of Newfoundland and Brazil (see below). But many a nation is not pinched. Last week Canada easily converted more than $600,- 000,000 worth of a series of Dominion bonds (totalling $1,084,800,000) into other series at impressive savings in the rates of interest. Fortnight ago Italy offered an internal loan of 4,000,000,000 lire ($210,000,000). Italian investors offered a total of 7,004,439,500 lire, a 75% oversubscription.

Newfoundland's Mere $8,000,000. Because the Government of Newfoundland, "Oldest British Colony," has been unable to find buyers for an $8,000,000 bond issue, harassed Premier Sir Richard Squires raised money last week by selling Labrador to "European interests": such was a Wall Street rumor that jolted the British Empire.

Asked to comment, Premier Sir Richard

Squires at first said, "Labrador is part of

the sovereignty of His Majesty the King.

. Labrador is not for sale!" In Montreal, whither Sir Richard went personally to seek a loan last week, he was asked again about selling or leasing Labrador. ''Have you any offers to make?" he smilingly queried correspondents. "Has Quebec, or Canada, or the United States anything to suggest? We'll be willing to listen!"

Brazil Moratorium? Year ago Sir Otto Ernst Niemeyer of the Bank of England reported on Australia, advised the Dominion merely to "retrench." In Buenos Aires last week correspondents were "reliably informed" from a Government source that Sir Otto would give Brazil a different piece of advice. His report would recommend, the correspondents were told, a "national moratorium" (postponement of payments) on all foreign obligations of Brazil's Na tional and State Governments. Sir Otto, although Vice Governor of the Bank of England, went to Brazil to oblige her chief British bankers, the House of Rothschild. He did not go at the invitation of the Brazilian Government. When cables screeching "Niemeyer Moratorium" reached London last week the House of Rothschild, startled, cabled Sir Otto. He rushed around to the Brazilian Treasury. Later he released with Treasury confirmation a denial that Brazil will declare a moratorium. What else Brazil can do (burdened as her whole economic life is by a stupendous coffee surplus of 20,000,000 bags) is for Sir Otto Niemeyer to say -- and say soon.

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