STRONG FINANCE

Gisborne Herald, Volume LXVI, Issue 20125, 20 December 1939, Page 12

STRONG FINANCE

BRITAIN'S RESOURCES GOLD AND EXCHANGE REASSURING REVIEW ' LONDON, Dec. 12. An encouraging view of Britain’s gold and foreign exchange resources is taken by a leading financial and economic expert. There are two urgent questions, he says. One is, shall we be able to buy all we want from neutral countries, even if the war is a long one? The other is, shall we, after three years or more, find ourselves impoverished without the investments on which we have relied?

Fortunately, he proceeds, the answer to both questions is reassuring. In the last war we needed resources to lend to our Allies. Even then, at the end of the war our gold holdings were not much smaller than at the beginning. Now France is in a much stronger financial position and we are not likely to have to lend to her.

Also, the resources of the Empire are greater, and some of the other goods we need can be bought by the barter system. We are likely, therefore, to need less foreign currency. Iln addition, Britain has greater means of payment. Present gold holdings are larger, and, owing to the increase in price, are worth much more. They will go four times as far as the stocks held in 1914-18. Also, the gold production of the Empire has increased by one-half and investments in the United States have been doubled.

'ln short, the expert concludes, we need less and have more. We have gained in strength and Germany has weakened. ‘