MONEY SYSTEM.

Auckland Star, Volume LXX, Issue 23, 28 January 1939, Page 9

MONEY SYSTEM.

BRITAIN'S STRENGTH.

Great Demands Imposed By National Necessities. THE BUSINESS OUTLOOK. British Official Wireless. RUGBY, January 27. Speaking at the annual meeting of the Midland Bank, of which he is chairman, Mr. "Reginald McKcnna said the British monetary system and practice were fitted to cope with the great demands imposed by national necessities. Britain was far stronger than ever before to face any possibilities of financial disturbance that might arise from developments abroad. Financial authorities were now better ] equipped for the management of currency, in which they had acquired by experience a rising standard of skill, said Mr. McKenna. Under the guiding hand of the Treasury, a high degree of co-ordination was being attained between the major elements in the monetary system—the Bank of England and the commercial banks. International Situation. "The business outlook is still overshadowed by international anxieties, but just as we have experienced sudden turns for the worse in foreign affairs, so we may yet experience an equally sudden change for the better," the speaker continued. "If this should happily take place, there will be little doubt as to the probability of a marked recovery of business during the coming year. Even as things are, I think we may reasonably look for some modest improvement.

"In external trade, the AngloAmerican agreement and the arrangements associated with it mark a big step forward in the direction of a larger volume of free interchange of goods over a greater part of the world.

"In domestic trade, we are probably far from having felt the full effect of the rearmament programme in stimulating output and employment."