BRITISH CRISIS

Hokitika Guardian, 31 August 1931, Page 5

BRITISH CRISIS

EMERGENCY POLICY [United Press Association.—By Electric Aeitsgrapn.—LopyrigUi/.J LONDON, -August 29. It is reported that one of the surprises at ihe Laoour Party s meeting was Mr Henderson's statement that he preferred a policy of emergency to the programme of severe economics that it now being launched by the National Government. TARIFF 7REFERABLE. TO CUT IN DOLE. LONDON, August 29. Air George Lansbury, speaking at Bow, said : “If there is no alternative between a tariff and a cut in the dole, then I am for a tariff.” • , DICTATING TO BRITAIN. . LONDON, August 28. Air Potliick Lawrence forwarded a letter which was read at the Labour Party’s meeting, and in which he said : “It is unthinkable that we should be compelled to balance the Budget at j the behest of foreign governments and foreign ' banks, omain's position is, far too 'strong to niake that necessary, j even in such a national emergency as the present,” He asked in view of • the Australian conversion loan which is of a far more drastic kind, whether it would not be possible in the national emergency to effect a large voluntary loan conversion in Britain at some j slight sacrifice to the banks and the big financial houses. FOREIGN BANKERS. LONDON, August 29. “The Economist” points out that the attitude of the foreign financiers is comparable to that of a man who refuses to lend to his acquaintance who is living beyond bis income unless the acquaintance shows definite evidence of the intention of pulling himself together. Continuing its parallel the paper adds: “The acquaintance would not even seek a loan unless he were sure that the request would be granted, since h:s creditors would ini-> mediately overwhelm him if it were known that he had unsuccessfully been attempting to borrow money.”

CORPORATION NEEDED

LONDON, August 29

The opinion .s now hardening i.n the City that no permanent world recovery is possible until prices rise and confidence is re-established, thus enabling a resumption of the normal investment of fresh capital.

It is pointed out that, while Britain's immediate task is to deflate/ costs, nevertheless international cooperation, with the. view of adjusting tin*, values of manufactures with those' of raw materials, is necessary in order to avert the international catastrophe, that was foreshadowed in the MacMillan committee's recent report.

BRITISH SECURITIES. LONDON, August 29

A prominent London banker criticises the Labour scheme of mobilising Britain’s foreign securities. He points out that the bulk of these could only be 'sold in Britain.

The banker, however, suggests as a pendant to the economy plan, that a limited number of highest grade securities that are readily marketable in world financial centres, should be exchanged for .British Government bonds, in order to form a centralised reserve, thereby enabling the Bank of •England to meet the extraordinary demands for the reimbursement of the foreign short term loans. 400 MILLION DOLLARS LOAN. BY FOREIGN BANKERS. LONDON, August 29.. A Franco-American loan to Britain at ii per cent., is being negotiated so as to strengthen sterling exchange. NEW YORK, August 28.

The J. P. Morgan Company has announced that French and American bankers have extended a total one year credit of approximately four hundred millions of dollars to the British. The firms participating in the two hundred million dollars American share of this credit, which has marked a record for a local short term foreign loan, have not been divulged, but they are understood to he the same banking organisations which were associated with the J. P. Morgan Company in the previous foreign credits. The details as to the form of the credit have not been published, hut they apparently differ from the terms of the French share of the sum, ami it is generally believed that the American portion of the loan will operate under the purchase of British Treasury hills.

So far ns could he ascertained, the present arrangement is not going to be used to retire the 125 million dollars to United States Federal Reserve Board credit that was granted to the Bank of England, which expires about, two months hence.

The presumption that the credit might ho funded into a long term loan has officially been denied. PARIS. August 28.

An agreement for French assistance to Britain was signed, under which France is providing forty millions storlirg. half of which are credits from private hanks, half being raised hv public subscription, in four and a-half per cent, one year treasury bonds. America has provided a further forty millions.

:nrrr.77g~ LIBERAL MINISTER'S CLAIM. LONDON. August 29. Sir. I>. Mac Lean, Member of the Gobi net. addressing liis constituents, said that- tbe allegation, that the hank, ers have manufactured the present crisis was entirelr unfounded. Their one object, lie said, was the country's good. They were not serving selfish interests. .