HER HOUSE IN ORDER

Poverty Bay Herald, Volume LIX, Issue 17944, 23 November 1932, Page 5

HER HOUSE IN ORDER

BRITAIN READY FOR BUSINESS

MILLIONS FOR INVESTMENT

LONDON, Sept. 26,

A return of world prosperity would find Britain ready and capable of cxplniting ii. dust a year after she went nil ihe gold standard and shook the financial ’world to its foundations, her leading banks are congratulating themselves arid the country on the return of public confidence, the cheapness ol money, the improvement of Government credit and the resounding success of the greatest loan conversion scheme in history.

"We have successfully put our house in order ami our position is immeasurably stronger than it was a 'year ago,’ savs Lloyds Bank, in a review of an eventful 12 months.

“True, in the industrial sphere wc nave lost some ground, but we have lost less than might have been anticipated and the progress ot the depression has been arrested.”

RESTORATION: IS ASTOUNDING “Cur financial prestige lias been restored to a degree astonishing even in retrospect,” says the Midland Bank, another of the “Big Five.” “No one could have foreseen 'it a year ago.”

One notable feature of the financial recovery is shown by the marked increase in hank deposits. Once the demand is forthcoming for capital for new investments, the banks, according to their own statements, will he able to advance at least another .CIOO.CCO.OCO at cheap rates. Meantime, they are investing their surplus funds in securities and bills, the latter mainly Treasury bills. But the moment the investment market opens u]> again the hanks will be ready to do their share.

LEADING INDUSTRIES ADVA NCI

Only in respect of domestic trade, is a despondent note sounded. While several leading industries have definitely

advanced during the year, the general trade position is still behind what it ought to Up. However, on the balance the United Kingdom “has suffered less from th» intensity and duration of the crisis than other nations.” Trade is no worse than it was when Britain abandoned the gold standard, though unemployment has increased •somewhat because of the wave of economy that has swept over the country. Sterling’s freedom to find unto as the economists prophesied has been beneficial, and, in general, financial and economic dealings with other nations are on a better basis than for many months. Those Factors which will make for further progress towards prosperity are largely outside Britain. They depend on what happens to the trade of the rest, of the world. But when that trade begins to revive this country will he bet lei; prepared to capture it than any of her rivals.