The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, MAY 25, 1929. BRITAIN’S PRESTIGE.

Hokitika Guardian, 25 May 1929, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, MAY 25, 1929. BRITAIN’S PRESTIGE.

5.;n Tiikuk is one interesting aspect of the M British Elections now in progress M which is attracting a good deal of atffllii lil aspects of varying issues are brought ; to the surface, and much thought I Li must he kindled thereby. Addressing

a meeting of electors in the City of London last week, Mr Baldwin rightly emphasised the immense importance of a reputation for caution, sound judgment and integrity in the world of linance. When the Prime Minister declared that London’s - acknowledged financial supremacy lias been built up not so much on''gold as on character, ho gave the true explanation of the undisputed predominance that “the City” lias so long enjoyed at home and abroad. The world’s trade is financed by means of bills of exchange, which are for the most part drawn on London, and provide a universally acceptable form of international currency. But this is possible only because ultimate payment is guaranteed by the great London accepting houses, which, long before Britain had to face an,y serious competition from foreign rivals n trade or finance had built up a world-wide reputation for financial experience, sound judgment and honesty. And closely associated with, this fact we must take into account the influence exercised by the City in international finance through the cautious and conservative policy maintained for over a hundred years by the Bank of England. Partly because of the restrictions imposed by the Bank Charter Act, partly because of the strong sense of public responsibility that the directors of the Bank have almost invariably displayed, British finance has seldom exhibited any tendency toward such hazardous speculative operations as have played so large a part in the financial history of Paris or New York. These are the reasons -which have enabled London to maintain so long its pre-eminence in .international finance, and which in spite of the enormous accumulated wealth of the Americans, have prevented New York from superseding l.ondon as the world’s financial capital since the war. Mr Baldwin has done well to .remind the electors that no greater injury could bo inflicted on the country than to adopt a policy calculated to damage England’s financial stability, and thus to impair the prestige of “the City” and all that it implies. This is an aspect of the “safety first” policy which the electors should seek to espouse on polling day now drawing so close. The prestige of Great Britain has been built up over long years. Probably the war period and its aftermath was the most notable time during which international faith in Britain was most manifested. Britain’s handling of the allied debt question is a case in point. The amounts due to Britain were far in excess of the debt sbe owed to the United States, but the Balfour Note of August, 1022, summed up Britain’s policy on tin* question in the following sentences:

“The policy favoured hv the British Government is that of surrendering its share of German reparation and writing off. through one great transac'ion. th n whole lmdv of infer-Allod indebtedness But if that is found impossible of accomplishment wo wsh it 1 o he understood that we do not in any event desire to. make a profit out of any less satisfactory arrangement.

‘‘ln no circumstances do we pro-

pose to ask more from our debtors than is necessary to nay to our creditors. Though we do not ask for more all will admit that we can hardly be content with less, for it slic'd not lie forgotten—though it sometimes is—that our liabilities were incurred for others, not for ourselves.”

1 lie honesty ul purpose manifested in the foregoing is on.standing. Alter all, interiialion.,l finance is the direct means of touching other countries, and the dealings wn'.eli have been going on tiiroumi Gicai Bream have been

~ miueieu without .oss of reputation. ~ou mi ana leasonaine g.vcrnment a.Oiig sf.iiole lines are Hie greatest asset ior a.iy country, anil lins nere.-sity must crop up m me ninuis oi the* British elect,as when weighing the political issues oi the day, in. oi veil m the present generai election.