The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, JULY 1, 1931. BRITAIN’S FINANCIAL POSITION

Hokitika Guardian, 1 July 1931, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, JULY 1, 1931. BRITAIN’S FINANCIAL POSITION

The sources of wealth of Great Britain are notably prolific, else the nation could not rank as the richest in the world per capita. This palm is given to Great Britain by botii British and American financiers, and because of it, we can well understand why London is the world’s clearing house financially. Great Britain is an importing nation, that is the imports exceed substantially the exports. Figures compiled by the Midland Bank show that for the past five years, imports of merchandise exceeded the exports in each year. In 1929, the exports were 848 millions and the imports £1229; while in 1930, exports totalled £6G6 millions and imports, £1052 millions. But Britain has earning powers in other directions which produce surplus millions Government receipts, shipping earning?, income from oversea investments, commissions and services, and the balance of gold sales over purchases, to swell the credit side, that there is always a substantial balanco available for overseas investment. The surplus available by this means was £143 millions' in 19L8, £l3l millions in and £44 millions in 1930. Altjipugh there has been a decline, it is nevertheless clear that as a trader and investor, Britain is still living within her income and capitalising profits for further investment. An American critic praises Britain for her post wai achievements, which is proof of hei fundamental economic strength, which it must be agreed is superior to that granted by her pessimistic, critics. It is admitted that Britain retains undisputed leadership in the matter of foreign investments, this despite the entry of the United States as a strong competitor. But withal, the prevai prosperity of the country is not apparent, and there is much conflict of opinion as to what might be done to restore it. It is evident that the next

general election will be fought out on Britain’s free trade policy and the imposition of tariffs either for increasing the national revenue, protecting Homo industries, or strengthening E'mp.re tie-;, or for all these purposes combined. This political criticism has gone on now for nearly three decades. Ever since the late Joseph Chamber lain resigned from the British Cabinet to press for tariff reform, involving preferential treatment, reciprocity in Empire trade, and where necessary retaliation in the ca.se of trade with foreign countries. There have been converts to this policy of late, and the Conservatives mean to make it the chief plank of the policy' appeal. On the other hand, Labour and the remnant of the Liberals adhere to free trade, to which the present Labour Government is definitely committed. Naturally they point to The' present proud position of British being the richest in the world, and despite all the financial disturbances, able to show yearly large sums for outside investment, which in turn attract business and trade, and eventually capital income to carry on and add to (die general source of wealth, which tho nation is able to point to in the practical surplus yield year by year. But round thjs issue will centre shortly (.mp of the most important political contests in the history of tire United Kingdom,