THE WORLD’S FINANCES

Otago Daily Times, Issue 18454, 16 January 1922, Page 8

THE WORLD’S FINANCES

, , REVIEWED BY MR SHELDON. Mr Mark Sheldon, who has Retired from the position of Australian Trade Commissioner in America, returned to Sydney recently. In referring to the debts owing to the United States, he said that there was no hope of some of the nations paying them in the near future, but none of them would bo cancelled. Groat Britain, however, was ready and willing to pay, and arrangements to this end were being.made. Other nations could not pay because they wore not living within their njeans. The total amount owing to the United States was about-10 billion of which Great Britain’s share was about four billion dollars, or, approximately, £800,000,000. With regard to rates of exchange, there was a gradual tendency of the £1 sterling to advance. At present Great Britain was buying, very little in the United States, and as a result there was not, a great demand for dollars. The reason for the non-advaSce-ment of the pound was that the mochihcry for international exchange in other nations outside Great Britain had broken down. When nations wanted to pay iin the United States they did not, for example, convert I ires into dollars, but purchased the sterling in London and then converted the sterling into dollars. This, naturally, put a strain on the London people. It ( was very high finance. Discussing the American tariff, Mr Sheldon said that people in. the United States were in a quandary about it. They believed that the putting into effect of the high tariff would impede the restoration of the credit of the world. Financiers pointed out that America could not collect her debts if she cheeked her trade. He believed that there would probably bo a higher tariff, but that affecting the Australian trade would be slightly less than under the Fordney tariff, which existed at present.