BRITISH FINANCE

Taranaki Daily News, 5 March 1921, Page 10

BRITISH FINANCE

REDUCTION OF THE DEBT. Discussing the British financial position as revealed by the figures for the calendar year, the Economist says:—“A chorus of abuse has been showered upon the unfortunate Qld Year, but it is pleasant to place to its credit two highly satisfactory features which mark its career. One is the fact that the total British debt was reduced during its course by nearly £250,000,000, and the other is the wonderful progress that has been made in reducing our adverse balance of visible imports, so establishing, if tlw official estimates of invisible exports can be relied on. a substantial balance in our favor on foreign debt or for reduction of. foreign debt or for lending abroad. Even these features, however, are more satisfactory on the surface than in fact. Reduction in debt has been achieved by the sale of assets left in the Government’s hands at the end of the war, and so from, the point of view of the purist is not a reduction at all, while the improvement in our trade balance is qualified by cancellation of contracts, and an industrial outlook at the end of the year which is full of anxiety and uncertainty. Nevertheless, there remains the very substantial fact that the financial position of this country, as measured in terms of the foreign exchanges, has improved decidedly during the year.”