LONDON MONEY

Hokitika Guardian, 9 November 1929, Page 3

LONDON MONEY

“ NO M.ORE CHEAP LOANS.”

WELLINGTON, November 7

“As a result-(of the (strain thrown upon London, in the matter miVlinding ready money,; tlie day of gettijig cheap financial accommodation in London is--past so far as the Dominions are (com eerned.” , • ' This statement- - < wa# --made by the Hon. A. D. McLeod, former Minister off Lands, who, in company with Mrs McLeod, returned by the Tahiti this week, from a world tour. He said that another factor in the situation was that the extraordinary amount of gambling that had gone on in the share markets of the United States had included much British capital, and in consequence the financial position in London had been detrimentally affected, tightening up the price of money. Undoubtedly there was a want of confidence in many of the industries in Britain, to which a contributory cause was the difficulty of finance. In addition, the necessity to meet the cost of tlie waiMhad brought \ about a tremendous tax oiL industry,FREE TRADE UNLIKELY.

'■The-'tadoption in the future of the ideal of Empire Free Trade had little prospect, despite the ; strenuous advocacy of Lord Beaverbrook, -said Mr McLeod. Lord Beaverbrook : had been carrying on a 'big campaign on behalf of Empire Free; Trade, 1 bui'iliost off the British politicians who. had had experience in handling affairs with the Dominions admitted that. under present conditions the ideal was-' impossible of accomplishment. Mr McLeod said he had found a lack of sympathy with tho proposal in the Dominions he had visited, and, in his opinion, England would have to go a long way further in raising the standard of living, of .her,workers generally before the . question---of Empire Free Trade could be seriously considered! • .. . Mr McLeod went on to say that he had observed a. distinct feeling-in ..lay.-.-our off extending-the principle-oi Empire preference, in contradistinction to the idea, of Empire Free Trade. That was noticeable among Labour supporters at Home, as,well as among the ranks of the Conservative Party, The great bulk of the . manufacturers at Home highly appreciated the preferences that had been granted to British manufacturers, especially by New Zealand. The warm regard among all

parties at Home towards the overseas Dominions engendered a feeling that the bonds of Empire conld be made stronger by closer trade relationships. It was felt, however, that that conld best be brought about by means of increased preferences rather than by Empire Free Trade. WAVE OF PESSIMISM.. A tremendous wave of pessimism among business men of the Australian Commonwealth was observed by Mr McLeod, which, lie said, was quite apart, from any feeling that.might have been caused by reason of the political situation in that, country. In face of the great fall in the value of her exports there was no doubt that Australia was to meet a difficult time. Owing to the banking system of Australia and New Zealand being interlocked, New Zealanders would be most, fortunate if they did not come in for a certain amount of the “ backwash ” as a result of the difficulties Australia was undergoing.