LONDON BALANCES

Ashburton Guardian, Volume 60, Issue 290, 14 September 1940, Page 6

LONDON BALANCES

GREAT INCREASE DURING WAR. ASSISTANCE TO HOME FINANCE. (United Press Association—Copyright.) (Received This Day, 1.25 p.m.) LONDON, September 13. Contributions which the Dominions made toward financing the United Kingdom’s Budgetary deficit through increases in their London balances recently attracted attention.

The “Economist” calculates that India, New Zealand, Australia, Smith Africa, Egypt and Hire together .increased their London sterling by from £89,000,000,000 to £90,000,000, which represents 40 per cent. The “Manchester Guardian” says that the increase in undoubtedly' a most useful aid to British war finance. India contributed most toward expansion, with New Zealand next.

The “Economist” estimates that New Zealand’s sterling assets amount to £19,750,000, compared with £7,110,000 before the war. On the contrary Australia’s increase is singularly small.

Financial circles do not expect expansion of the dominions’ oversea assets to proceed much further. Among the reasons for this is the flow of gifts of one kind or another from the Empire to the British exchequer. The Stock Exchange splendidly resisted intensified air raiding. There lias been complete absence of panic selling. The slight set-back in price is due wholly to further contraction of the already meagre turnover.