BRITAIN’S FINANCES

Greymouth Evening Star, 2 December 1940, Page 8

BRITAIN’S FINANCES

CITY NOT ALARMED. [BY CABLE. —PRESS ASSN. —COPYRIGHT ] LONDON, November 29. The City is sceptical about Lord Lothian’s statements that Britain’s available gold securities have virtually disappeared. Lord Lothian’s object was to stress the urgent need to remove legal., obstacles now prohibiting credits for Britain. Britain, it is believerd, has still sufficient gold and foreign securities to finance the war for at least 18 to 24 months. The “Statist” concludes from an analysis of relevant figures: “If we have already parted with the bulk of our assets, realisable in the United States, this must have been very largely for defence requirements for the second year of the war.” Other commentators say that apart from dollar securities, Britain has considerable oversea investments which could easily be pledged or realised. Some suggest that American interests would be only too eager to obtain a stake in undertakings like the South African and Australian gold mines, Australian lead and zinc, Malayan tin and rubber, and Rhodesian copper companies. Empire assets of this kind would be realised only as a last resort, but would form a second line of reserve of external assets.

RESOURCES IN U.S.A. WASHINGTON, November 29. The United States Treasury has announced that foreign banking funds in the United States at the end of the first year of war have reached a record of 3,601,000,000 dollars, including the arrival during the year of 800,000,000 dollars of refugee funds. British banking balances have decreased by 320,000,000 dollars. Britain’s short-term holdings at September 4 were valued at 385,000,000 dollars., and Canada’s at 395,000,000.