CREDIT IN AMERICA

Ashburton Guardian, Volume 61, Issue 43, 30 November 1940, Page 6

CREDIT IN AMERICA

SUFFICIENT FOR MANY MONTHS.

EXTERNAL RESERVE OF ASSETS.

LONDON EXPERTS’ VIEWS. (Received This Day, 11.20 a.m.) LONDON, November 29. The City is sceptical about Lord Lothian’s statements that Britain’s available gold securities have virtually disappeared. Lord Lothian’s object Avas to stress the urgent need to remove the legal obstacles noAA r prohobiting credits to Britain. Britain, it is believed, has still sufficient gold and foreign securities to finance the Avar, for at least 18 to 24 months.

Tlio “Statist” concludes from an analysis of relevant figures, that if Ave have already parted Avith the bulk of our assets in the United States, this must have been A 7 ery largely for defence requirements for the second year of the Avar.

Other commentators say that apart from dollar secAirities, Britain lias considerable oversea investments Avliicli could easily be pledged and realised on. Some suggest that American interests Avould only be too eager to obtain a stake in undertakings like the South African and Australian gold mines, Australian lead or zinc, Malayan tin or rubber, and the Rhodesian copper companies. Empire assets of this- kind would be realised on only as a last resort, but they form a second line reserve of external assets.