The Chrønicle LEVIN MONDAY, JULY 10, 1916. FINANCIAL PROBLEMS.

Horowhenua Chronicle, 10 July 1916, Page 2

The Chrønicle LEVIN MONDAY, JULY 10, 1916. FINANCIAL PROBLEMS.

Amongst tliu serious problems arising out oi tlie great war is the- topsy-tur-veydom in finance. It will come ais a shock to all casual observers to find experts in finance questioning the merits oi British Consols as a safe investment for trust moneys; yet already that stage of critical enquiry has been leached. At tli© Royal Institution some two months ago, a recognized fin,ancial( authority, Professor H. S. Foxwell, said he thought that now the people had got used to it there was not much to be said in favour of retaining our paper money after the war. In the task of trying to balance production and consumption Germany and Austria had, put their populations upon rations. He believed to some extent high prices liad fbeon deliberately beeu Brought about in these countries with a. view to enforcing economy. The day of Consols was over; obviously a security which was liable to a depreciation of 50 per cent in 20 years was not a very eligible one froir tlie bankers' point of view. In future we should lia.vc terminable loans over comparatively small periods. He advocated a system of continuous borrowing as against the raising of large loans, which were largely artificial andi often illusory. He would like to see oxu- loans take a similar position to Rentes in France, in which the interested. He could not understand why wo had not made some attempt to tap the large hoards of money in In (Via.