ECONOMIC CRISIS

Evening Post, Volume CXII, Issue 86, 8 October 1931, Page 13

ECONOMIC CRISIS

PROBLEM OF ORIGINS INTERNATIONAL. ISSUE THOMAS LOOKS AT WORLD CONFIDENCE IN BRITAIN , (British Official Wlrolcss.) RUGBY, 6th October. Mr. J. H. Thomas, Secretary for the Dominions, in an interview to-day, emphasised the world-wide uatuvo oil the economic crisis, and expressed tho view that the international measures ultimately would prove essential. Tho statesmen of the world, he said, must address themselves to the origins of tho trouble, which wcro rooted in reparations, debts, and currency problems. One of the first duties of the new Government would be to apply itself to these international issues. As to the Imperial aspect of the Government's work, he hoped that the National Government's Empire policy would aim at making fuller use of the Empire's immense resources. Ho expressed complete confidence that tho Unitod Kingdom was in no danger of losing her financial supremacy.. Those who indulged in such tlmibts might bo reassured by considering the position before Britain returned to tho gold standard in 1925. "It was found then that.we did not forfeit our position to the United States or to any other country, beeauso our knowledge of international commerce and finance, and tho -traditions and connections built up for more than half a• century were more important than the relation of our currency to gold. "Our temporary difficulties must not obscure the essential strength of our position. We have been for more than a century, and we remain, tho wealthiest country in Europe. Our foreign trade is greater than that of any other European. country. "Onr banking system is absolutely sound and secure, and_ in this respect, contrasts favourably with that of countries whoso currency is still on a gold' basis. ' . "Our foreign assets run into thousands of millions of pounds. Though the pound temporarily is cut adrift from a fixed gold standard, our Budget is securely balanced and the Government, and Opposition, too, are inexorably opposed to inflation. "Thus there is no reason whatever to anticipate a considerable or prolonged depreciation of sterling or any failure of this country to retain its financial leadership." , .