STERLING FUNDS

Evening Post, Volume CXXX, Issue 66, 14 September 1940, Page 12

STERLING FUNDS

SUBSTANTIAL RISES

DOMINIONS HELP BRITAIN

NEW ZEALAND'S PART

(By Telegraph—Press Association—Copyright.) j (Received September 14, 1.30 p.m.) LONDON, September 13. Contributions which the Dominions have made towards financing the United Kingdom's budgetary deficit through increases in their London balances have recently attracted attention. "The Economist" calculates that India, New Zealand, Australia, South Africa, Egypt, and Eire together have increased their London sterling funds by between £89,000,000 and £90,000,000 which represents a rise of 40 per cent. The "Manchester Guardian" says that the increase is undoubtedly a most useful aid to the British war finance. India has contributed most towards the expansion, with New Zealand next. "The Economist" estimates New Zealand's sterling assets at £19,750,000, compared with £7,110,000 before the war. Australia's increase, on the other hand, has been singularly small. Financial circles do not expect the expansion of the. Dominions' overseas assets to proceed much further. Among the reasons for this is the flow of gifts of one kind or another from the Empire to the British Exchequer. The London Stock Exchange splendidly resisted the effect of the intensified air raids. There was a complete absence of panic selling and the slight setback in prices was wholly due to further contraction of the already meagre turnover.