BRITAIN’S RECOVERY

Hokitika Guardian, 4 March 1932, Page 5

BRITAIN’S RECOVERY

LIABILITY REDUCED OVERSEAS LOANS IMPRUDENT (British Official Wireless.) RUGBY, March 2. The Chancellor of the Exheequer (Mr N eviile Chamberlain) announced .in the House of Commons, that arrangements had been completed to meter more than half of the obligation on the credits to America, anti 130,000,000 dollars of America’s credit wou-d be repaid on Friday, thus reducing that credit from roughly 0-10,000,000 to roughly £10,000,000. ‘■’This paymment is final,” he said “the lenders having consented to return a proportionate part of the 10 per cent, commission, as from the date of maturity of existing bills. “Tlie credit given by French bankers is now reduced from roughly £20,003,000 to roughly £7,000,000. The remaining section of these French credits is represented by Treasury Bills to the value of roughly £20,000,000, in the hands of individual French ' holders, and we have no power to re- j quire them to accept repayment before August.”

Mr Chamberlain, replying to a. question, said that the time had come when it was safe to withdraw the Treasury order under the Gold Standard Amendment Act, restricting tlie purchase by British nationals of foreign exchange, and it would bo withdrawn, with effect - from to-night. As to the question of foreign loans, it was for the authorities of the city to

judge about the issue of new loans at present. He imagined ' that they tt-ould not consider it wise for us to lend promiscuously overseas, and in that provision he would concur.

INSPIRING SCENES.

FURTHER REDUCED BANK RATE ’ LONDON, March 3. Mr Neville Chamberlain’s announcement in the House of Commons has created great satisfaction throughout the country, and is regarded as a striking indication of the manner in which Britain is recovering her financial stability.

The stock markets are buoyant and scenes in Throgmorton Street are reminiscent of the boom days. Hopes are expressed of a further reduction in the bank rate. As regards exchange dealings, the Ministers think there is now no danger of people becoming nervous about the prospects of sterling. There is evidence of a good deal of nervousness in some gold standard countries, about their own currencies. On the other hand the universal confidence in sterling is remarkable. This is attributed to the fact that Britain is almost the only country to succeed in balancing her budget,

ECONOMIC ADVISER. TO BRITISH GOVERNMENT. RUBGY, March 2. Sir Frederick Leith Ross has been appointed Chief Economic Adviser to the British Government in succession to Sir Sydney Chapman, who has retired from the Civil Service on his appointment as a member of the import Duties Ar/yisory Committee. Sir Alfred W. Hurst and Mr James Rae are to be Under-Secretaries in the Treasury, consequent on the appointments of Sir Russell Scott as permanent Under-Secretary in the Home Department, and of Sir F. Leith Ross as Chief Economic Advises.

WHEAT QUOTA BILL. LONDON, March 2. In the House of Commons, in the debate on the Wheat Quota Bill Miss Megan Lloyd George, referring to the Ottawa Conference, said that Canada had made it clear that her primary concern was the profitable sale of wheat, by establishing a better market in Britain, therefore a bargain satisfactory to Canada would cost Britain dear. The taxation of one part of the 'Empire, for the benefit of mother, had i:e\ er been a happy Imperial policy, and it would not bind the Empire in closer union. The Bill was read a second time, bv 428 votes to 55.