The Daily News WEDNESDAY, JULY 12, 1922. THE MONEY MARKET.

Taranaki Daily News, 12 July 1922, Page 4

The Daily News WEDNESDAY, JULY 12, 1922. THE MONEY MARKET.

The latest review of British trade and financial conditions reveals a situation (hat can cnly be regarded as unique when viewed in the light of the enormous drain in the last seven years on the resources of the Motherland. It is stated that English financiers are already freely discussing the prospects of a further reduction in the bank rate, thereby indicating that money is now abundant and that there is plenty of it awaiting investment. It is somewnat remarkable that this financial recovery in Britain should synchronise with another heavy fall in the German mark, and a smaller decline in the value of French and Belgian currency. Emphasis is laid on the fact that the present state of the Berlin Exchange has virtually brought about- a standstill of any attempt by Germany to meet cash payments of accounts, while reparation payments are affecting her similarly as to external payments, which must be made for raw materials. This to some extent accounts for the statement, cabled from Paris last Saturday, to the effect that the German Government proposes to ask the Allies for the total remission of gold reparation payments for 1923-24, and substituting therefor increased payments in kind The impression created m Berlin is that the German Government is allowing the mark to reach the level of the Austrian currency, when they will tell the Allies they are bankrupt and cannot pay reparations. It by no means follows that the Allies wil. fall in with such a manifest evasion of responsibilities, though it is hardly likely such a position will arise. Apparently Austria has actually reached a financial crisis that will require very careful handling to prevent a formidable upheaval and a political collapse Austrian currency is now almost valueless, and the position is creating something like consternation. as there appears to be no remedy or alleviation m sight. Matters in Bavaria seem to _be even worse than in Austria, owing to German organisation of political terrorism “on a sound commercial basis.” Crime appears to hold sway, being directed against Republicans, the Monarchists pursuing their usual underground ruthless methods. Under «uch circumstances no one can wonder at financial chaos accompanying political upheavals, the spectacle presented by what were the Central Powers forms a striking commentary on the evils of war and the instability of warlike alliances. The contrast between the position of these prewar arrogant Powers and the piesent financial position of Britain is most remarkable. While they have reached almost the lowest depth of solvency. Britain, who shouldered the main portion ot the Allies’ war expenditure, stands to-day stronger in finance than ever, in spite of her colossal debt. The. state of her national accounts at the present time may well cause other nations to wonder, and this is mainly due to largely increased revenue on the one side and a commendable shrinkage of expenditure on the : other. Never before has Britain had such an exceptional opportunity to capture the world’s trade as is the. case now. AH that is needed is the lowering of the cost of production, the stimulative ot adequate capital not only -tor manufacturing, but for guaranteeing credits, and a determination on the part of the workers to avoid industrial troubles and to concentrate on production. Apparently there is plenty of money m Britain for all legitimate purposes. From a Dominion point of view the more the British workers earn the better will it be for the