DOMINIONS’ HELP

Manawatu Standard, Volume LX, Issue 246, 14 September 1940, Page 8

DOMINIONS’ HELP

UNITED KINGDOM. FINANCE.

NEW ZEALAND’S PART

(United Press’ Association—Copyright.) (Rec. 1.25 p.m.) LONDON, Sept. 13. The. contributions which the .Dominions have made towards financing the United Kingdom's budgetary deficit through increases in "their London balances have recently attracted attention. The Economist calculates that India, New Zealand, Australia, South Africa, Egypt, and Eire together have increased their London sterling fund by 89 to 90 million pounds, which rej presents a 40 per cent. rise.

The Manchester Guardian says the increase is undoubtedly a most useful aid to British war finance. India has contributed most towards the expansion, with New Zealand next. The Economist estimates New Zealand’s sterling assets at £19,750,000 sterling compared with £7,110,000 before the war.

On the contrary, Australia’s increase is singularly small. Financial circles do not expect the expansion of the Dominions’ overseas assets to proceed much further. Among the reasons for this is the flow of gilts of one kind or another from the Empire to the British Exchequer. The Stock Exchange has splendidly resisted the intensified air raiding. There is a complete absence of panic selling, the slight setback of prices being wholly due to a further contraction of the already meagre turnover.