BRIGHT OUTLOOK

Southland Times, Issue 22139, 6 October 1933, Page 7

BRIGHT OUTLOOK

BRITAIN ADVANCES IMPROVED TRADE AND FINANCES “NO FLASH IN PAN” (British Official Wireless.) Rugby, October 4. Addressing bankers and merchants in the City of London at a dinner , given by the Lord Mayor last night, Mr Neville Chamberlain, Chancellor of the Exchequer, made an important statement on the improvement in the financial and commercial position of Great Britain. He declared that Britain had “turned the corner and in almost every direction we see indications of definite progress and a growing sense of confidence. This is no mere flash in the pan, but the beginning of a permanent advance.” Undoubtedly, he said, the situation showed a far more favourable prospect now than a year ago. Britain’s prosperity was intimately bound up with a revival of international trade. How was that revival to be obtained? It was possible to name four major objects for which they might seek. First he would put a rise in wholesale prices, especially the prices of primary commodities, and in their case there was no method so certain and rapid in its operation as the control of production and the proper adaptation of the supply to the demand where that could be effected by international agreement as had recently been attempted in the case of wheat. The second object was the removal or lowering of oppressive trade barriers. The third object was the establishment of an international monetary standard. There was no standard which could compare in that respect with the gold standard. It seemed likely that ultimately Britain would return to the gold standard, but Britain could not consent to link her currency to gold until she was certain the conditions prevailing were such as would permit the gold standard to function efficiently. The resumption of international lending might be the last of the four objects to achieve a complete fulfilment. The dark shadow of unemployment, he said, showed signs of lifting at last, and he hoped the September figures would show that the encouraging drop still continued. He would be very disappointed if at the end of the financial year, after making provision for the obligatory sinking fund and for the payment made to the United States last June, he would not be left with a surplus available for the redemption of the debt.

BRITISH FINANCES SUCCESSFUL CONVERSION LOAN. CASH PORTION OVERSUBSCRIBED. (British Official Wireless.) jßec. 5.5 p.m.) Rugby, October 4. The latest British conversion operation, whereby the Government offered £150,000,000 on a 2£ per cent, conversion loan, 1944-49, at £94 per cent., has been a complete success. The offer was made on September 28 on which date the cash applications were closed, the allotments being issued to-day. Applications up to £5OOO received the full allotment, while those for larger amounts have to be content with about 79 per cent, of the amount applied for. Conversion rights into the new loan were given to holders of £50,757,000 of 4J per cent. Treasury bonds due for repayment on February 1 next. The saving on these bonds will amount to nearly £1,000,000 a year. The rest of the loan, about £100,000,000, will reduce by that amount for the time being the total floating debt and will provide means for redeeming £10,500,000 of 4 per cent. Treasury bonds, 1934-36, should the Government elect to give notice of redemption on April 15 next. Dealings in . the new conversion •started this morning on a par basis.

NEW ZEALAND LOAN QUICKLY OVERSUBSCRIBED. (United Press Assn.—Telegraph Copyright.) (Rec. 11.55 p.m.) London, October 5. The New Zealand conversion loan of £5,000,000 has been oversubscribed. The lists closed in 35 minutes.