Britain Still Wealthiest Country in Europe

Horowhenua Chronicle, 8 October 1931, Page 3

Britain Still Wealthiest Country in Europe

UNASSAILABLE FINANCIAL SUPREMACY. DOMINION SCEI&TARY’S OPTIMISM (British Official Wireless.) Received Wednesday, 9.50 p.m. . ■ * RUGBY, Get. 0. The. outstanding feature at the / close of the stock markets to-day was the substantial improvement recorded in the leading British funds following on a renewal of investment buying together with a sharp recovery of the sterling. The war loan of 5 per cent, was finally quoted 1£ points up at 98. International descriptions : closed firmer. Mr. J. H. Thomas, Secretary of the Dominions, in an interview, emphasised the worldwide nature of the economic, crisis and expressed the view that international measures would ultimately prove essential. The statesmen of the world must address themselves to the origins of the trouble which were rooted in reparations debts and currency problems. As to the Imperial aspect of the Government's work Mr. Thomas said he hoped the National Government's -Umpire policy would aim at making a fuller use of the Empire’s immense resources. He expressed complete confidence that the United Kingdom was in no danger of losing her financial supremacy. Those who indulged in such doubts / might be reassured by considering the position before Britain returned to the gold standard in 1925. It "was found then that* we did not forfeit our position to the United States or any other country because our knowledge of international commerce, finance and traditions and connections built up foi over half a century were more important than the relation of our currency to the gold. “Our temporary difficulties," said Mr. Thomas, “must not obscure the essential strength of ohr*. position. We had been for over a century and we would remain the wealthiest country in Europe. Our foreign trade was greater than that of any other European country. Our banking system is absolutely sound and secure and in.this respect, contrasts favourably with that of countries, whose currency is still on the, gold basis. Our ■ foreign assets run into thousahds of millions of pounds. Though the pound is temporarily cut adrift from the fixed gold standard, our Budget is, securely balanced and the Government and Opposition are too inexorably opposed to* inflation. Thus there is no reason whatever to anticipate ft considerable or prolonged depreciation >

of the sterling nr any failure of this country to retain its financial leadership. ,i