BRITAIN'S RESOURCES

Evening Post, Volume CXXX, Issue 129, 27 November 1940, Page 7

BRITAIN'S RESOURCES

NEED FOR PRUDENCE

LONDON PRESS COMMENT

LONDON, November 25.

"The Times," discussing Lord' Lothian's reminder that Britain's invjj mediate resources are not inexhaust-rf ible, says that the fact that Britain'*-pre-war gold and dollar resources maj<] be larger than in 1914 is a very inadequate measure of her continuing; ability to finance purchases from ther United States on a cash basis. This ir exemplified by the sevenfold increas6» in the cost of aircraft.: \ ;

The paper adds that the resources^ available for current dollar payments] are doubtless still substantial, but thej British purchasing commission mustK work on a definite programme, as it! is imprudent to,enter into commitments now which,are likely to be beyond the limit of resources in 1941-42. The country itself can achieve some extension Jbf the limit by reducing the volume of non-essential imports and expanding exports.

The "Daily Mail" says Lord Lothian's remarks had a chilling effect on the markets today. No doubt the, fall, of France precipitated the present situation. In a leader, the "Daily Mail s*'5*' couples Sir Kingsley Wood's statement* that the war is costing £9,000,000 a day with Lord Lothian's remarks. It suggests that they are reminders that even Britain's purse is not bottomless and that she must seek new ways of finano" ing the most expensive conflict ever.

The "Daily Telegraph" asks for a' frank statement from Britain in order to give the United States due notice of( her certain need for credit facilities in 1942, as it is essential that difficulties of payment should not inter* rupt the flow of necessary war materials. •