Sterling Exchange.

Hokitika Guardian, 24 June 1922, Page 4

Sterling Exchange.

now improvement affects BRITAIN. One effect of the improvement in the dnllar-sterling exchange .during the past two years has been to reduce the British debt to the Foiled States by IFF- millions sterling, 'I lie British Chancellor of the Exchequer (Sir Robert Home! directed attention to this noteworthy fact in his recent Budget speech. The total British debt, to America is l.lGfi.OOO.’Of) dollars. At the rate of 8.20 to which the exchange dropped two years ago, this was equivalent to Cl ‘.SOI .875.000. When tlie 1 ChtMieellor spoke the exchange stood at 4.-10- it has since further improved and the sterling equivalent of the debt to America was £IMI!,820,0fl0. As yet. of course, Britain is paying only interest on this debt, hut the actual benefit 'fs substantial. Tlie improvement in exchange also reduces heavily the amounts Britain has to pay for imports from the Fnited States. Sir Iks bert Horne mentioned in his speech that the improvement, from the rate of 8.80 to -1.-10 made a . difference of 8o millions sterling in the payment to he made for such quantities of• foodstuffs ninl cotton as Britain purchased from America in 192.1. With the normal rate of ‘exchange established, the British debt to America would he further nutamnt ienll.v reduced by well over 109 millions sterling.