BRITISH TRADE AND FINANCE.

Hokitika Guardian, 28 January 1926, Page 4

BRITISH TRADE AND FINANCE.

A BANKER OPTIMISTIC. DUNEDIN. January 2G. Mr A. IE Chambers, general man„,ver of the Union Bank of Australia,

is oDtimistie with regard to the trailing and financial conditions obtaining inherent Britain at the present time. At the close of the Australian wheat harvest last year Mr Chambers was invited to London by the Board of Directors of the Bank, ami, after spending some months in the United Kingdom. returned to Melbourne in November last. When Mr Clin tubers reached theUnited Kingdom the return to the cold standard was the subject of all exceedingly keen controversy among financial authorities. At the time restriction was being imposed upon the lloating of both foreign and dominion loans in the Old Country, and Mr Chambers soon found that this policy was being adopted as a measure of caution. The return to gold was more or less of an experiment, and some eminent economists in England questioned the wisdom of the step. Tn order as far as possible to have a full measure of solely, banking opinion considered it advisable, to lend money abroad more carefully, the object being to prevent a drain of gold from the country, which would make the task of maintaining the standard a matter of difficulty. The same reason actuated those who gave the advice to the Comnionwaelth Treasury officials that it would not he regarded as a Ims- ( tile act if they were to arrange for a, portion of their loan requirements in New York. That would in no way be

I a blow to the* prestige o! C* resit "Britain, bill it would be considered ns a safegun i'd till it could lie ascertained how the new arrangement: would work. Air Chambers said it was clear that fears on the subiccl were unfounded and Indeed it could be asserted that the course adopted was the sensible one to take. flankers generally, in the United States, at all events, were convinced that it was wise to go back to gold. Air Chambers had found that a feeling existed in London that it would he wise for Australia to he moderate for some time lo come in respect to borrowing, and that whilst no one f|uestioned the stability of the country, it would be unwise to add fresh liabilities to the already large debt of the Commonwealth. A favourable impression had been created among British financiers bv the manner in which the Commonwealth conversion loan of £07,000,000 had been supported, and this had been strengthened by the fact that the Australian hanks had undertaken almost the whole of the issue, a course

winch had attracted a good deni of attention in London, where it had met with warm approval. Great Britain, said Mr Chambers, was undoubtedly picking lip in trade and tiuanco. The opinion in the bestinformed circles at Home was that she would gradually improve her position and would eventually more than hold her own. The British people as a

whole appeared to he determined to j uphold the nation, and even the coal j miners were not following some of the j extremists. There also seemed to he i a strong nnderourrent of loyalty' amongst the people of the United Kingdom, which would sooner or later override any Bolshevist or Soviet propaganda. English workpepble were not the type to support any idea of revolution, which some pessimists said ; was inevitable. A strong Ministry was . in power, and it was dealing with public affairs in a broad and generous ! spirit, and any suspicion that England J was decadent or moving towards re- 1 volution was quite unfounded. j