BRITAIN'S WEALTH

Evening Post, Volume CIV, Issue 4, 5 July 1927, Page 6

BRITAIN'S WEALTH

DEMANDS BEING MET

WAR DEBTS POSITION

THE NOTE TO AMEEICA

(From "The Post's" Representative.) LONDON, 18th May.

Mr. Churchill at the annual dinner of the British Bankers' Association discussed his Budget, economy, the effect of last year's strikes, the British Note to America on "War Debts, and, German competition.

"I tried my best in my recent Budget," he said, "to shield the country as mueli as possible from the consequences of the disastrous folly of last year. On the whole, I think we have a right to say that the results of the Ldctget have been good. Since the Budget was announced unemployment and the bank rate have gone down. There are many people who think they mo cc together. On the other hand, our exchange and gilt-edged markets .have gone up.' "When one considers that it is the duty of the Chancellor oi' the Exchequer to frame a Budget not to produce these effects, but only to pay an extremely heavy bill, he is entitled to a certain amount of modified; complacency when . you see, in addition to paying the bill,.these favourable by-products have been gathered in." «

On the subject of Debts the Chan-cellor-of* the Exchequer continued: — "No onecan pretend that our prospects o_ debt conversion have not ieen preludieed by what took place last year. We" have been thrown back at least eighteen months. .... :

"There were difficulties in the" field of debt conversion and repayment. No doubt the forward spreading of liabilities on the future generation through the issue of conversion loans at a discount afforded a cause for misleading the ignorant, and still more the half-in-structed, through,' the fact that there was an increase in the* nominal dead weight total of the debt. Moreover',, the fact that we were moving through a period when the cost of living was slowly and steadily inclining also had its reaction in increasing the real weight of the debt. Against those factors we had the undoubted reduction in the,annual interest charge, which 'had amounted to nearly 50 millions .since fie war, and if the American debt were included it amounted to nearly 75 millions. We have reduced the external debt of the country by £9,000,000 last year ana £260,000,----000 since the war.- That is.a matter of immense importance. ' NOTE TO AMERICA. ", But here I must remind you that we found it necessary a short.time ago to re-state our position in respect of our payments to. the .United States, and of-our receipt '■'. fronr our European, debtors, allied and ex-enemy. I yield to none in the general admiration which ■ is; ; felt I', for Mr." Mellon's position as a world statesman and financier, bu 4- it is that very high reputation which he has which made it absolutely neeesary forvHis; Majesty/s Governmentto issue^in one':form or 'another the perfectly clear cbrree'tion.'.of certain mis-statements: into- which he had inadvertently been led. (Cheers and somo laughter.) '? We have n6 desire to interfere in the^ domestic controversy of the Unitedv,Slat;es.'; v .;Wo/-know quite well that any' interference 'ihy us in these controversies would be prejudicial \ and could do no good, bat when a man of that eminence and unequalled financial authority makes statements which do not correspond with our view of the facts, we owe it to our .debtors in Europe, we owe it to "the public opinions of these lands against whom we have had' to "impose"severe demands — we owe it to them to make it absolutely clear that Great Britain in no cir-' cumßtances is making anything out of the war debt transactions of the late war;" • - ."''-..7 '. <', '/<■ .', '■'';- ,■■

In spite of the misfortunes bit" last year, one great fact had emerged, the prevailing and hitherto unexhausted strength, financial and economic," of the country. Neither the general striko nor the coal strike, prolonged for seven months, had been, able... to break then* /down: ;: .that,; wp ::rshpuld have been able;to'^ go:..through; thjit vhorriblo experiejuco; with our newly/achieved good standard, which mercilessly rovcaled and '..Blatantly; exposed every weakness in,the financial position of our great community-—that wo should liavo been able to go' through/that horrible cxporie'ijtco without losjiig ,/any gold to spealc of from ..our} gold rosources, without haying dreamed of touching the immense credits which we had thought it necessary .to provide—that,he waa sure those who'wore^ experienced, in teahce wqijla, \join with hint in aayingj, was ;<» grand and blessed achievement:'of \the • Britisli nation., (Cheers.) /'Butwe.ar'o not through our difficulties,Jl'ihe' went on. MOur road is uphill^'rvß/wiff continue to bo uphill, and .we'can only ■ press forward." ; .■- '-d ' ' ':'■'" ,'-.'''