STILL SUPREME

Rotorua Morning Post, Volume 1, Issue 39, 8 October 1931, Page 3

STILL SUPREME

(Br itish Official Wireless) "

BRITAIN'S POSITION FINANCIAL LEADERSHIP NOT FORFEITED TO AMERICA RICHEST COUNTRY IN EUROPE

RUGBY, Tuesday. The Secretary of State for the Dominion, Mr, J. H. Thomas emphasised in an interview the world-wide nature of the economic crisis and expressed the view that international measures would ultimately prove essential. "The statesmen of the world must address themselves to the origins of the trouble, which is rooted in the reparation, debts and currency problems," he said. As to the Imperial aspect of the Government's worlc, Mr. Thomas said he hoped the National Government's

Empire policy would aim at making f uller use of the Empire's immense resources. He expressed complete confidence that the United Kingdom was in no danger of losing its financial supremacy. Those who indulged imsuch doubts, he said, might be reassured by considering the position before Great Britain returned to the gold standard in 1925. "It was found then that we had not forfeitpd our positioh. to the United States or any other country because our knowledge of international commerce and finance, our traditions and our connections, built up for over half a century, were more important than the relation of our currency to gold," he said. "Our temporary difiiculties must not obscure the essential strength of our position. We have been for over a century, and we remain, the wealthiest country in Europe. Our foreign trade is greater than that of any other European country; our banking system is absolutely sound and secure, and in this respect contrasts favourably with that of countries whose currency still is on a gold basis. Our foreign assets Irun into thousands of mlllions of pounds. "Though the pound sterling has temporarily been cut adrift from the fixed gold standard, our Budget is securely balanced and the Government, and the Opposition too, are inexorably opposed to inflation. Thus, there is no reason whatever to anticipate any considerable or prolonged depreciation of sterling or any failure of this country to retain its financ'al leadership," Mr. Thomas concluded.