DECLINE OF THE SOVEREIGN.

Hawera & Normanby Star, Volume LXXIV, Issue LXXIV, 27 August 1919, Page 5

DECLINE OF THE SOVEREIGN.

• SERIOUSNESS OF THE POSITION

ECONOMY IN ADMINISTRATION ESSENTIAL.

GREATER PRODUCTION NEEDED

BY CABLE—PBJSSS ASSOCIATION—COPYEIGHI

LONDON, Aug. 26. Newspapers continue to draw attention to the adverse rate of exchange between London and New York. Although the market has recovered slightly from the violent shock following Air Lloyd George's speech, further fluctuations are anticipated. It is generally agreed that the break will have served a useful purpose if it draws the attention of the public to our enormous in- , debtedness to the United States, and opens the people's eyes to the evils of extravagance, and convinces them that the importation of unnecessary articles ... and the absence of expansion of ports •„ will further depress the exchange, autoxnatically increasing our indebtedness. , It is pointed out that the fall in exchange, will react unfavorably on America's export trade. In fact, it has -already resulted in the cancellation of a considerable volume of orders. American exporters are also incurring losses •-owing to taking payment in depreciated liluropean currency. Sir Auckland Geddes dealt with the situation in a speech at Basingstoke. He said that two great problems v.ere hefore the country—to get production • and to find markets. The Government was organising a system of export ■credits with a view to facilitating the resumption of the export trade to the •disorganised parts of eastern Europe, and was also remodelling and strengthening the consular, commercial md diplomatic services, and making an -effort to foster trade within the Empire. Regarding production the greatest danger was the decline in the output of -coal, without wrhich the recover;, of Europe was impossible. There was a -danger of America- flooding us \iith goods. She was not only a grea. exporter of manufactuied goods, but ibe greatest exoorter af raw materials. She •-. wants little from abroad. Consequently the money exchange moved in her favor. Every sucn movement interferes with her power of export. Si/ Auckland Geddes stated that *f America -continues to sell great quantities ofr ;food to Europe, aad the latter p^'S them in money the exchange wi\\ move more and more in her. favor until food :and manufactured goods from America will be almost unbuyable. Therefore Europe must work out its own salvation, which can only be done through hard work, and increased production in mines, the fields and factories. Sir Auckland Geddes indignantly defied that, ihe Government was not •attempting'to reduce expenditure. The 'Government had formed a Financial -Committee to study means for economising, and Mr Lloyd George (chairman) was devoting his wonderful '■ energy to tbe .^ubect. Enormous results had been achieved, but there were great commitments that could not im* be reduced. There would have been social chaos without the employment donations, and the Government could not completely demobilise until peace was secured. We were.no:where near peace. Regarding Turkey and the East, the oointed out that a Board of 'Trade sttff of 6000, including the. staffs at all ports, had been trading on a great scale. The purchases of meat totalled thirty millions, and they had a, stock of twelve millions' worth of timber. Both transactions had saved the i -country millions. Mr Lloyd George, in a letter to all r the State spending departments, points / out the urgency of economics and the reducing of staffs to their norma,! Each department is asked to report before the reassembly of Parliament. ' It is understood revised Navy, Army,,' and Air Estimates will be presented. The Clyde shipbuilders have received •orders to stop work on warships except -those about to be launched. This will involve the unemployment of many -thousands. It is understood that «imilar orders have heen given to shipyards elsewhere.