SIR H. BEAUCHAMP

Hokitika Guardian, 25 November 1932, Page 5

SIR H. BEAUCHAMP

VIEWS ON POSITION

OF WORLD FINANCES. •■ ' v (Per Press AssCniatiovr- Copyright.) WELLINGTON, November 24. Sir Harold Beauchamp, who returned from London to-day by the Rangitane, said that he was of the same opinion to-day as when lie left New Zealand, that we cannot look for a real revival in wo rid-wide trade until some definite arrangement be made for the wiping out of the heavy international indebtedness, which is strangling trade-in all parts of the world. Referring to the depreciation of 'sterling, he said: “It has been, oi course, of service to British trade, and it is unlikely that the authorities will allow sterling to be linked again to gold until the country’s financial position warrants such a step being taken. The low value of the pound in,the terms. of geld has resulted in large shipments of gold being made to Britain. The shipments from India alone have amounted to £65,000,000.”

“Extraordinarily low rates are ruling in the money market—as low as one-half of one - per cent. for over night and weekly fixtures. These indicate that there is still a lack of confidence on the part of investors, many of whom prefer to keep their rest ireeg into a liquid form. “With a return of confidence, 1 should not be surprised to see„ a great expansion in business. Already a mild boom has occurred in the ' United States, when gilt-edged securities appreciated in value during the month of July to the colossal sum of £2,150,000.000.” . ' Disagreement' with the proposal artificially to raise the rate of exchange was expressed by Sir Harold Beauchamp. <

Though he does not welcome a bounty as an alternative method of assisting the primary producers, Sir Ha"old considers this to be the lesser of the two evils. • . ■ ■. :■■■■■■ In an interview Sir Harold Beauchamp said that during his 6tay in London as a member, of the Local Board of the Bank of New Zeglaid, he had been constantly in touch with eminent financial authorities. These men earnesly desired to bring ibout> an expansion of trade between Britain and New Zealand. They were hopeful that an expansion would come as the result of the Ottawa Conference, but they view with apprehension any attempt to raise the rate of exchange unduly, as this would seiously affect the export trade of the Dominion. Sir Harold said also that. it would offset, in a large mei sure, the advantages gained by way of the {prefer-, ence* arranged at the Ottawa Conference. He added: *1 understand, however, that this is a burning question in New Zealand at the present time, and the outcome of the move to raise the exchange will remain to be seen, I have my own opinion on the subject, but I do not know the minds of my fellow Directors ”