BRITAIN’S FINANCES

Hokitika Guardian, 8 October 1931, Page 5

BRITAIN’S FINANCES

STILL SOUND, SAYS MR THOMAS THE DEBT BURDEN.

United Press Association.—-By Electric-

Telegraph.—Copyright.)

RUGBY, October 7

Air J. H. Thomas, Secretary for Dominions, in an interview, emplias,sed fhe worldwide nature or the economic crisis, and expressed tbe view that international measures would ultimately prov essential. He said that statesmen of the world must address themselves to the origins of the trouble, which were rooted in repa rations, debts, and currency problems. As to the imperial aspect of the Government’s work, Mr Thomas said lit* hoped that the National Government’s Empire Policy would a:m at making fuller use of the Empire’s immense resources. He expressed complete confidence that the United Kingdom was in no danger of losing financial supremacy. Those who indulged in such doubts might be reinsured -by considering tin; position before Britain returned to the gold standard in 1923, He says: “I|. was found then that we do not forfeit our position to the United States or any other country, because our knowledge: of international eoihliiercti, fina lice and traditions aiid connections, built up for Oi-er half n century, were more important than the relation of our currency to gold Our temporary difficulties must not obscure the essential strength of our position. We have been for over a century, and we remain, the wealthiest country in Europe. Our foreign trade is greater than that of any other European country. Our banking system is absolutely sound and secure, and in this respect, contrasts favourably with that of countries whose currency is still on the gold basis. Our foreign assets run into thousands of millions of pounds. Though the pound is temporarily cut adrift from the fixed gold standard, our Budget is securely balanced and the Government and the Opposition too, are inexorably opposed to inflation. Thus there is no reason whatever to anticipate any considerable or prolonged depreciation of sterling or any failure of this country to retain financial leadership.”

BRITISH MISSION TO PARIS

RUGBY, October 6. Lord Reading (Foreign Secretary) accompanied by Sir Frederick LeithRoss (Deputy Chancellor of the Treasury), S : r Walford Selby and Mr Howard Smith; of the Foreign Office, left this morning en route for Paris. STOCK EXCHANGE FIRMER. RUGBY, October 6. An outstanding feature at the close of the stock markets today was the substantial improvement recorded in leading British funds, following on renewed investment buying, together with a sharp recovery in the sterling rate, The War Loan 5 per cent, stock was finally quoted 1]- points up at 98. Stocks of international descriptions also closed firmer.