BRITISH TRADE

Hokitika Guardian, 27 February 1933, Page 6

BRITISH TRADE

MONEY SHORTAGE

RECOVERY EVIDENCE DISAPPEARS.

(United Press Association—By Electric Telegraph—Copyright) (Received this day at 8.35 a.m). LONDON; February 26. Evidences of-the- recovery at the beginning of the year are disappearing, owing to the -'international tension. Railway traffic receipts are declining again; electrical power consumption is .feelow December; and reports of home Industries show an absence of enterprise. The export coal trade is busy with outstanding orders, but there is little Iresh business, so a further set back is probable. The textile industries are modifying their new year optimism, as spring orders show that coining international ftrade is equally stagnant. The best news is the reconstruction of Europen- Stool Cartel to end the ruinous price cutting of the past lew years. This has already resulted in the hardening of prices.

Short term money continues slow in London, necessitting the authorities continuing heavy gold purchases. Layton emphasises that most of this money coming from America, will be repatriated’ when the -American situation improves. If the Government pays the June instalment of the war debt it will not- have funds to repay the short term money. England cannot- afford to risk paying the debt from resources loaned to her. This would lead, to a situation analogous to the German bankruptcy, of 1931, and precipitate a- fresh crisis.