“WONDERFULLY GOOD.”

Manawatu Standard, Volume LVII, Issue 197, 21 July 1937, Page 2

“WONDERFULLY GOOD.”

BUSINESS IN BRITAIN. <T SIR WM. HUNT IMPRESSED. WELLINGTON, July 21. “Politically and financially, Europe is in a turmoil.” said Sir William Hunt, chairman and managing-direc-tor of Wright, Stephenson and Co., Ltd., in an interview yesterday-, when he returned to Wellington after a 12 weeks’ trip abroad. “During the time I was ill London there were continual European disturbances caused by. the repercussions of the civil war in Spain, and financial conditions were upset by the position of the franc and the possibility of a reduction in tlie price of gold. “Notwithstanding these disturbances, business in Britain is wonderfully good, and, except in a few depressed areas, everyone seems busy and prosperous. Just how much of this prosperity is created by rearmament expenditure it is difficult to say, but at the moment Britain is enjoying a period of prosperity, which is reflected on us in New Zealand through improved prices we are geting for our products, most of which are marketed in Britain. CURRENCY SITUATION. “The gold scare was a very, real one while it lasted, but tbe general feeling in London was that there was very little chance of any material alterations in tbe price of gold for a long time to come. While enormous supplies of gold have concentrated in the United States, and to a lesser extent in Britain, there are sound reasons why this should be so. The currencies of the world are in such an uncertain state just now that there are immense sums of money commonly called ‘refugee’ or ‘hot’ money seeking a home in a currency that will not depreciate in value. t Tlie United States dollar and the British pound sterling are, at the moment, looked upon as the world’s two soundest currencies. Immense sums of this refugee money have been transferred to these two countries for safe keeping. “These huge transfers of money are the cause of the great flow of gold to the United States and Britain. Some day, when conditions settle down, this money will be wanted back in the countries whence it came, and the only way of sending it back will be bv skipping gold. If the United States and Britain reduced the price of gold now, it would mean that when the time comes to repay tbe foreign capital now lodged with them, they would have lo ship out far more gold than thev received. AUSTRALIAN CONDITIONS. “Business conditions in Australia are ve,ry prosperous, and that country, it is agreed not only by Australians but also by people in Great Britain, should have a very bright future Australia is making wonderful strides as a manufacturing country. It has already put its iron and steel industry on to an export basis. Tt is claimed by experienced Australians, and this claim is confirmed by men who should know in Britain, that Australia can to-day produce steel at a lower cost than any other country in the world. Steel is the basis of almost all industries, and a cheap supply of steel is a wonderful foundation to enterprise in any* country.

“I found that English opinion of the Australian workmen was almost uniformly good, whereas their opinion of the New Zealand workmen was just the reversq,” said Sir William. “Unfortunately, about the only contact British industry lias with New Zealand is the shipping industry with our waterside labour, which is classed as among the world’s worst, whereas British industry has many contacts with Australian labour. I tried to combat, this view whenever T emlld. for apart from the waterfront. I think our New Zealand workman, no matter if working with his hands, his pen, nr his brain, is equal to any in the world.”