(FINANCE IN GREAT BRITAIN.

Taranaki Daily News, 26 April 1932, Page 4

(FINANCE IN GREAT BRITAIN.

‘Amid the confusion of the tariff proposals, the disarmament proposals with their reaction upon national budgets, and the ever nrSnt question of war debts, one matter stands out clearly in the financial condi lions in Great Britain. The Bank of England reduced its minimum exchange rare what it was nine months ago. It is an Action which shows very plainly how thoroughly British credit has been restored Nine months ago foreign capital was; being withdrawn at a rate that was ultimately tn bring about the abandonment of the gold standard. In his Budget statement fast week the Chancellor of the ®« het l Mr Neville Chamberlain, was able to say that short-dated foreign investments were now reaching London at a rate that was almost embarrassing. He « cC °“ , P® n this statement with a warning that the dit Acuities ahead were still serious, but that there was reason for the hope that tne worst of the financial peril had been overcome Great Britain has repaid loans to France and the United States before they were actually duo and this again was a pertinent indication of the But for the business community tne. oan.K rate is the financial barometer which is most usually referred to for indications as to the conditions that are likely to obtain. The lower the rate of discount, speaking generally, the better is the state of the financial markets and the more money ie free for trading and investment. It has not been stated yet whether the reduction will benefit Dominion traders in the transfer of payments between New Zealand and London, but in any case a feeling of confidence in Great Britain is sure to be reflected in business offering, so that indirectly the Dominion is likely to benefit from any financial recovery in the United Kingdom.