BRITAIN’S FINANCES

Evening Star, Issue 21054, 17 March 1932, Page 10

BRITAIN’S FINANCES

*- BALANCING THE BUDGET VICTORY FOR THE NATION Press Association—By Telegraph—Copyright. LONDON, March 15. Mr Stanley Baldwin, addressing Ilford Conservatives, said that the victory achieved in balancing the Budget was a victory ior the whole nation. If the pound sterling had broken six months ago when we were borrowing to make ends meet nothing could have saved the country from, a tragedy similar to those suffered by countries whose currencies collapsed. Foreign money six months ago was pouring out of England; now it was pouring in. Though the export trade was bad we were better off than our competitors. The influx of foreign manufacturers, though, exaggerated, was a real movement, which should increase trade. The public need not look for a Cabinet crisis or a premature breakdown of the National Government, which was pretty sound. Wo should work for the common weal, without thought of self. . ON ROAD TO RECOVERY STABILITY OF STERLING. (British Official Wireless.) RUGBY, March 16. (Received March 17, at non.) With nearly three weeks before the end of the financial year only £24,000,000 —£20,000,000 less than the corresponding date last year—remains to be received by the revenue authorities to assure a balanced Budget. As the closing weeks in the year are usually estimated to bo the heaviest revenue producing, there is every reason to believe that March 31 will see a Budget surplus substantially above that estimated when Lord Snowden introduced the Budget last September. With this satisfactory result in prospect, encouraging statements upon British progress along the road to recovery have been made by two Cabinet Ministers, Mr Stanley Baldwin and Sir John Simon. Mr Baldwin, speaking at Ilford, said To-day we are in a position when the Budget will balance and borrowing on current account has stopped, I hope, for ever. Two months ago we all felt the greatest anxiety about the stability of our currency. To-day people are looking to sterling in many parts of the world as one standard of natural anchorage. The most remarkable feature of the remarkable winter has been the steadiness of retail prices. Production shows an improvement in the last quarter after a continuance of trending downwards for the preceding twenty-one months." He said he had higher hopes himself than he had had for some years.

Sir John Simon, speaking at, Norwich, stated that there .was abundant evidence that the credit of Britain had been largely restored. The Foreign Office had better reason than anyone else to know the effect produced on opinion abroad. “ At Geneva, Paris, in America, and everywhere in the world where doubts had arisen as to whether this old country was entering on its decline a new belief in the power of Britain to save herself has been established. We have some distance to go before we return to prosperity, but the world believes to-day that Britain has the power to surmount her difficulties because the world realises that Britain has the will to do so. It is no exaggeration to say that the whole world to-day is very impressed with the recovery of Britain.” Sir John Simon referred to the deep impression abroad caused by the recent repayment six months before the due date of the £80,000,000' credits received from France and America last August to save the pound. LOAN CONVERSION ANNOUNCEMENT BY GOVERNMENT. LONDON, March 16. (Received March 17, at 1.25 p.m.) The Government is inviting holders of £116,000,000 4J per cent. Treasury bonds, ' maturing April 15, to convert into 4J per cent, conversion loan at the rate of £97 12s Gd of conversion per £IOO of bonds, or into 4 per cent. Consolidated Loan at £lO7 per £IOO of bonds.