WORLD EVIL.

Auckland Star, Volume LXIII, Issue 250, 21 October 1932, Page 7

WORLD EVIL.

FROZEN CREDITS.

bankers helpless.

Montagu Norman Confesses Difficulties. taint glimmer of hope. (United P.A.—Electric Telegraph—Copyright (Received 1.30 p.m.) * LONDON, October 20. Mr., Montagu Norman, speaking at the bankers' dinner, described how the frozen credits throughout the world were one of the greatest impediments to business. Trade would find s way over and around almost any tariff if it could be financed, but the freezing oi bankers' credits rendered trade extremely difficult, British lending used to be practically indiscriminate and merely competitive. He questioned whether it could continue the same freedom in the future. Britain, when the revival came, would need a robust, rationalised industry and commerce offering the same attractions for investments as would be offered abroad.

Referring to the world position, Mr. Norman said that vast forces had caused a series of events uncontrollable by any man or Government. It seemed impossible. to get united world action.

"The difficulties rre so vast and the forces so unlimited and- so novel, and precedents are so lacking that I approach the; whole subject in ignorance and humility. It is too great for me. lam willing to do my best. I see a light at the end of the tunnel somewhat indistinctly, but we have not yet emerged from our difficulties." DECLINE OF STERLING. CAUSES ANALYSED, i s; LONDON, October 20. The "Financial Times" says that among the suggested causes for the decline of sterling is that difficulties on the Continent are prompting nervous holders of sterling balances to repatriate their money and strengthen their own position. As regards withdrawals by banking institutions there has been a revival of rumours concerning the position of certain important French banks. The situation in one or two other Continental countries is not such as to inspire confidence. In regard to withdrawals of privatelyheld funds these are stated to be prompted by uneasiness about the political outlook in Central Europe. TREASURY BOND ISSUE. ALLOTMENTS RECEIVED. (British Official Wireless.) RUGBY, October 20. Allotments on a basis of 47 per cent were received yesterday by subscribers to the issue of £150,000,000 worth of 2 per cent Treasury .bonds. Dealings were begun on the London Stock Exchange yesterday morning on a basis of J to I premium.