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Hokitika Guardian, 8 March 1924, Page 2

bcritnio in this respect was indicated by a report issued'on belialf of the Finance Committee. In this it was stated that “the equilibrium of the general Budget is always menaced by the increase ill the capital of the public debt. So long as that debt cannot be diminished and redeemed the financial peril will subsist for France.” On December o.itlr, the Minister of Finance stated in the Senate that the net increase in the public debt in 1920 was 38,080.000,000 francs; in 1921, 26.0d4.000.fJ00 trams; in 1922. 17,947.000,000 francs; and in 1936 tup to November 90), 15,357,000--000 francs. It is scarcely necessary to 1 oiiit to the financial policy of Croat Hi itain in the same period to indicate Inc urgent necessity Fiance was und-r of calling a halt in this respect, and in the circumstances her action in lending considerable slims to sii' li count l ies as Poland, Roumania, and Jugoslavia, at a time when .she was not paying a contime of the large amounts owing to Client Britain and America, was one which people on this side could not understand.

Fi'.vnck is not the only country whose exchange has fluctuated very greatly of late. The quotation of the £ sterling in America has lately ruled at very little above the lowest point it has ever touched. The matter is a very serious one for Britain because, apart from the large amount paid evert year for interest and sinking fund on the American debt, the extent of other national purchases from America in a year are estimated at about 1.000 million dollars. How important it is may be gathered also from the fact that the fall in the American exchange from the highest point touched last year to the lkture lately current meant that the sterling equivalent of the Britsih debt to America was increased by approximately £100,000,(00 taking the amount of the debt is that stated in Congress by the Secretary of the Treasury, 'flic drop in the ext linage lias been largely due to exceptionally heavy purchases of dollars by people in Biitain, and, more particularly perhaps, in European centres who desired to sell securities because ci tear that they would depreciate further in value and invest the proceeds'in -ML | ir issues. In Great Britain such tr.twit rs have been induced by lie misgiv mgs as to the future of home politic-, more especially the threat of n levy upon capital. It remains to lie seen linvever, whether funds sent to America will be any safer there than in the Homeland, and when the American exchange recovers, us almost certainly it will in due course, a loss will he represented by the rate at which the feuds were transferred.