ECONOMIC WARFARE

Greymouth Evening Star, 7 September 1939, Page 8

ECONOMIC WARFARE

BRITISH MINISTRY OPERATING. [BY CABLE —PRESS ASSN. —COPYRIGHT.] (Received September 7, 9.45 a.m.) LONDON, September 6. It is officially announced that the Ministry of Economic Warfare is now fully operating. It corresponds broadly to the Ministry of Blockade, created during 1914-118. The Ministry’s aim is to disorganise the enemy, and thus prevent him effectively maintaining the 'war. The Ministry’s activities have the widest scope, and economic warfare must be regarded as a vital offensive arm, complementary to the operation of the three Services. However, every effort will be made l to take account of the legitimate trading needs of neutral countries. The organisation for this purpose has been in progress for two years, and a complete staff, drawn partly from foremost experts, was embarked months ago. It is working in close co-opera-tion with France. TRANSFER OF GOLD LONDON, Sept. 6. Sir John Simon, in the Commons, said that power had been taken to put private holdings of gold and foreign exchange securities under Government control. He added that the Treasury and the Bank of England had transferred £280,000,000 sterling in gold to the war-time exchange account. The first measure had been taken to strengthen the finances abroad. The gold transfer entailed an automatic increase of the fiduciary note issue, by £280,000,000. It was done in order to concentrate the Government’s foreign resources into one reserve.

Sir John Simon announced, in the Commons, that the fiduciary issue is being increased to £580,000,000 from £300,000,000.