THE FINANCIAL QUESTION.

Sun (Christchurch), Volume II, Issue 616, 31 January 1916, Page 7

THE FINANCIAL QUESTION.

A REMARKABLE ANALYSIS.' "LONDON STILL THE BORROWING CENTRE OF THE WORLD.' (Received January 31, 8.20 a.m.) LONDON, January 30. Sir Edward Hopkinson Holden, chairman of the City and Midland Bank, in a remarkable analysis of the financial situation, says:—" London is still the borrowing and gold centre of the world. The pound sterling has never had to carry such a load as at present, and has naturally declined in value in accordance with the law of supply and demand, but while the exchange value in New York has depreciated by 1.9 per cent., in Holland by 10.3 per cent, in Spain .6 per cent., and in Scandinavia 3.9 per cent., it has enormously appreciated elsewhere. The pound is above par in Paris by 10.8 per cent., and in Italy by 2f>.4 per cent. "The decline in Holland is due to our having exported there, during the year, only £17.500,000, while we imported £28,500,000. We could readjust this by sending gold to Holland, but it might find its way to Germany. The Bank of England has £50,000,000 in gold, and the Government has £28,500,000. The Joint Stock Banks also have large sums, while there Is a continuous flow from South America."

ALARM IN GERMANY. THE "TERRIFYING POSITION" OF THE COUNTRY. (Received January 31, 8.40 a.m.) AMSTERDAM, January 31. The "'Berliner Post" deplores the financial situation and the Government's policy of concealment, and declares that it would be a great mistake if the people were not gradually acquainted with the position, which is terrifying. But few people have any idea how serious the position is, and even the highest thinkable indemnity will not prevent stupendous additions to .the next Budget. THE FOOD PROBLEM. PEOPLE ADVISED TO EAT DOGS. (Received January 31, 10.10 a.m.) LONDON, January 30. The "Central News" Copenhagen correspondent says that the people in Germany have been advised to kill all dogs, except the costliest and best breeds, so that the flesh may be eaten and the skins used to provide soldiers' coats.