STRONG SUPPORT

Southland Times, Issue 22491, 28 January 1935, Page 7

STRONG SUPPORT

MONETARY POLICY

CHAIRMAN OF MIDLAND

BANK

EXPANSION IN BUSINESS

EXPECTED

(British Official Wireless.)

(Rec. 5.5 p.m.) Rugby, January 25. In his annual address to the shareholders of the Midland Bank, Mr Reginald McKenna, chairman, strongly supported the Government’s monetary policy. He said it had proved so successful in the first three years that there was no reason for reversing it. On the assumption that it remained in force, there was good reason for expecting continued expansion of the nation’s business. There was ample available short-term credit for meeting any demands arising from further trade recovery and there was no shortage of funds in the hands of the public awaiting long-term investment. He emphatically dissented from the view that Britain had approached the limit of possible expansion, based on broadening the Home market, and that further recovery depended upon widening the foreign markets. Now that sterling was free to find its level, the old restrictions on Britain’s power of development were recovered, and that held true for the whole sterling group in which the monetary policy had already brought about a substantial measure of recovery.