BUSY BRITAIN

Hawke's Bay Herald-Tribune, Issue 157, 21 July 1937, Page 9

BUSY BRITAIN

-Preaa Aasociation.)

Prosperity Unchecked By Frequent Scares SIR W. HUNT'S COMMENT

(By Telegraph-

WELLINGTON. This Day. "Politically and financially, Europe is in a turnioil," said Sir William Hunt, ehairman and inanaging director of Wright, Stephenson and Co., Ltd., in an interview yesterd'ay, when he returned to Wellington by the Maunganui, after a 12-weeks trip abroad. "During the time I was in London there were continual European disturbances caused by the repercussions of the eivil war in Spain, and financial conditions were upset by the position of the franc and the possibility of a reduetion in the price 'of gold. "iNotwithstanding these disturbances, business in Britain is wonderfully good, and, except in a few depressed areas, everyone seems busy and prosperous. Just how much of this prosperity is created by rearmameiit expenditure it is difficult to say, but at the moment Britain is enjoying.a period .of prosperity which is reflected on us in New Zealand througih improved prices we are getting for our products, most of which are marketed in Britain. The Cold Scare.

"The gold scare was a very real one while it lasted, but the geperal feeling iri London was that there was very little 'chance of any material alterations in the price of gold for a lohg time to come. While enormous supplies of gold have concentrated in the United States, and to a lesser extent in Britain, there are sound reasons why this should be so. The currencies of the world are in such an uncertain state just now that there are*immense sums of mohey commonly called 'refugee' or 'hot' money seeking a home in a currency that . will not depreciate in value. The United States dollar and the British pound sterlingj are, at the moment, looked upon as the world's two soundest currencies. Immense sums of this refugee money have been transferred to these two countries for safe keeping. "These huge transfers of money are the cause oi' the great fiow of gold to the United States and Britain. Some day, when conditions settle down, this money will be wanted back in the countries whence it came, and the only way- of sending it back will be by shipping gold. If the United States and Britain reduced "the price of gold how, it would mean that when the time comes to repay the foreign capital now lodged with them they would have to ship out; far more gold than they received. Australia's Future. "Business conditions in Australia . arq-very prosperous, and that coiintry, it ii agreed not only by Austrnlian^, but also by people in Great Britain, should have a very bright future. Australia is making wonderful strides as a manufacturing country. It has already put its iron and steel industry on to an export basis. It is claimed by experienced Australians, and this claim is confirmed by men ,who should know in Britain, that Australia can to-day produce steel at a lower cost than any country in the world, Steel is the basis of almost ali industries, and a cheap supply of steel is a wonderful foundation to enterprise in any country. "I found that English opinion of the Australian workmen was almost unifor mly good, whereas their opinion of the' New Zealand workmen was just the reverse," said Sir William. "Unfortunately, about the only contact British industry has with New Zealand is the shipping industry with our waterside- labour, which is classed as among the world's worst, whereas British in- 1 dustry- has many contacts- with Australian labour. "I tried to combat this view wheneven I could, for, apart from the waterfront, I think our New Zealand workman, no matter if working with his hands, his pen or his brain, is equal to any in the world."