FINANCING THE EMPIRE.

New Zealand Herald, Volume LXIX, Issue 21233, 13 July 1932, Page 8

FINANCING THE EMPIRE.

Among the suggestions in his thoughtful discussions of Ottawa's possibilities, Professor Belshaw, of the Auckland University College, advances that of an Empire reconstruction loan of, say, £100,000,000 for expenditure in the overseas. Dominions. Success in handling it might, he adds, encourage similar attempts with regard to Central Europe. It is self-evident that ah aggravating circumstance in the economic difficulties which beset Australia and New Zealand has been the severe curtailment of loan funds available from London. To set the flow in motion again appeals, therefore,, as a promising means of stimulating recovery. - In contrast with this proposition' can be taken an important section of a report recently issued by the Federation of British Industries. This survey includes the factors wliich, in the opinion of the federation, have helped to precipitate the world crisis, and to involve Britain in it. An important place is given to what is considered the misdirection of Britain's external investments, especially since the war. Too much of the money, it is suggested, has been used for the development of competitive countries rather than of complementary industries: and too much has been lent to Governments and public bodies, which have been permitted to compete too successfully for funds which should have been used for industrial development. These are very significant views. Whether right or wrong, they suggest that so far as they are typical of the British outlook, money will not be available for the Domftiions in the future without the lenders having a clear idea ox its destination and the future results to be expected from its use. This does not bear in any way on the value of Dr. Belshaw's loan it rtierely indicates that British acceptance of anything like it might be qualified by a demand for very precise information about the use of the money.