ADVERSE BALANCE

Dominion, Volume 26, Issue 49, 21 November 1932, Page 9

ADVERSE BALANCE

Britain’s Heavy Burden TEN MONTHS’ TRADING Bearing on War Debts Issue By Telegraph—Press Assn. —Copyright (Received Nov. 20. 8.25 p.m.) London, Nov. 20. The past ten months’ trade figures suggest that Britain is likely to be faced with a heavier adverse balance than last year. The “Financial News” estimates that an excess of imports of merchandise totalling £330 million will be partly offset by invisible exports, including shipping, income from overseas investments, and commissions, totalling £240 million. The adverse balance is thus likely to be £9O million, compared with £75 million in 1931. “The figures reveal the impossibility of regular resumption of American debt payments," the paper adds: “The uncertainty in this connection has depressed the markets all the week, and caused a renewal of the fall of sterling. The December payment equals four years - British exports to the United States.” The “Economist” suggests that existing obligations should be replaced by a fresh issue of bonds of limited amount which debtor Governments could safely float in America involving a reduction In war debts equivalent to the Lausanne reparations annuities. The paper adds: “American financiers, administrators, and Press realise the impossible position. The public alone refuses to face realities.” VALUE OF STERLING Exchange Fluctuations RECOVERY FOLLOWS FALL London, Nov. 18. Sterling receded to 3.27 i dollars to £l, the lowest point of the year. The drop was due to fears that payment the war debt to America in December would deplete the exchange equalisation fund, rendering the authorities unable to support the pound. Heavy seasonal payments for cotton and wheat contributed to the decline in sterling from which later there was a sharp recovery to 3.29 dollars. The franc rate also improved from 83 5-8 to 84 to £l.