FINANCE.

Feilding Star, Volume XII, Issue 2857, 31 January 1916, Page 2

FINANCE.

SIR E. HOLDEN'S ANALYSIS. (Received January 31, 8.20 a.m.) London, January 30.

.Sir Edward Holdcn, chairman of the London City and Midland Bank, gives a remarkable analysis of the financial situation. London, according to hi in, is still the borrowing and gold centre of the world. The pound sterling has never had to carry such a load as at present. Naturally, it has declined in value in accordance with the law of supply and demandf but while the exchange value in New York lias depreciated by 1.9 per cent.. in Holland 10.3, in Spain and in Scandinavia 3.9. it has enormously appreciated elsewhere, the £1 being above par in Paris, and 10.8 iv Italy. Tho decline in Holland is due to our having exported there during the year only £17,500,000 worth, while we' imported £28,500,000 worth. We could readjust the position by<sending gold to Holland, but it might find its way to Germany- The Bank of England has £50,000.000 worth of sold, and the Government has £23.500".000. The joint stock banks also have large sums, while there is ii continuous flow of gold from South' America.