SOUND POSITION

Rotorua Morning Post, Volume 2, Issue 414, 24 December 1932, Page 5

SOUND POSITION

(Press. Assn.-

BRITISH FINANCE ABUNDANT CREDIT DESPITE THE RECENT GOLD PAYMENTS NOTE CIRCULATION

-By Telegraph — Copyright).

Rec. Dec. 23. * London, December 22. The Financial Secretary to the Treasury, Mr. L. Hore-Belisha, in the course of a debate in the House of Commons, mentioned that between May 11 and December 14 the banks' i gold holding had increased by an amount almost equal to the payment to America. The notes in eirculation had increased in the same period from £358,000,000 to £372,000,000, and the cash at the clearing house from £179,000,000 to £193,000,000 Credit, therefore, was notoriously abundant. Furthermore, instead of 1 f oreigners selling sterling in conse- | quence of a reduction of £20,000,000 1 in the notes in reserve in the banking { department, they were actually buy- | WS) so that the worst -that was anticipated had not happened. Replying to representations of the Chamber of Commerce to increase the fiduciary issue, Mr. Neville Chamberlain, Chancellor of the Exchequer, em phasises the misconception that the payment to America has correspondingly contracted currency. He said that he saw no reason to anticipate a shortage of credit or a necessity for increasing the fiduciary issue.