BRITISH FINANCE

Hokitika Guardian, 8 November 1932, Page 5

BRITISH FINANCE

SAVINGS BY LOANS HUGE INTEREST BILL REDUCED. (United Pres* Association—By Electric Telegraph—Copyright.) LONDON,. .November 6. The financial records -of no country parallel the easeAvithif v hich tnc treasury placed its latest conversion loan of 300 millions, crowning a stupendous series of operations which effected the .conversion of nearly 37 per cent, of Britain’s internal, debt, transferring a large proportion from the unfunded to the funded category. The annual,, gross interest bill : is . reduced from one hundred and seventeen and a half to, seventy millions , sterling. The net saving, after making an allowanoe for the reduced receipts from income tax, cannot be under 30 millions. The Treasury can now rest for at least 18 months, before other maturities and callable obligations arise, . The, /‘Financial News” expresses the,, .opinion while a grateful nation .wili not be niggardly with K.B,E. ’i, o.r baronies, nevertheless

the Government’s chipf adjutant was thg general depression assuring, a sterile

glut of idle funds. The stock exchange is, .uncertain, following the conversion. A turn from long to short dated f tocks and a move towards Industrial*,, can he., observed. There i» * belief that gilt-edgeds have now reached the top, and re-invest-ment of giHedged profits .are, likely to provide a" fair market turnover for a considerable period. Indices show that one unit of gilt-edged 1 is now worth approximately two, units of industries* Authorities, are reported to b e preparing for the repayment of the Am© rican .debt ' in. December’ ‘"'which amounts to thirty millions sterling at, the present rate of exchange, equivalent to approximately* two years’ British exports to" America. The present level o( Britain’s adverse trade with America, exclusive of debts, is 'estimated at £35,000,000 consequently 'the debt must be paid from the Equalisation Fund, weakening the control over exchange. The budgetary embarrassment of (France and United ‘States is. encouraging. bullish speculators. “The Statist” expressed the opiniojjjf that, when seasonal pressure on sterling decreases it may be difficult to prevent substantial appreciation., , Bad trade remains despite the oonver;ion, concerning which: it is hoped the Government will bring positive proposals before the world economic conference,, which unhappily , will not be .held lUlitil Spring: It is anticipated that the preparatory committee will Sit fol* three ' weeks and ftdjburn till January, delaying the full conference, , Group* of lead manufacturers in (Britain are pressing the Government to force the Empire dead producers to supply products at prices ensuring a continuance of the high' manufacturers’ profits which for yearis restricted the consumption of metal, it is lea-rn-ted authoritatively ’ that the Empire producers prefer free trade in lead and lead manufactures, to the system under which they were compelled to supply the manufacturer at His own figure.