TRADE EXPANDS

Taranaki Daily News, 17 April 1935, Page 5

TRADE EXPANDS

RECORD ESTABLISHED BRITISH MANUFACTURES CAPITAL WORK INCREASE THRIFT OF THE PEOPLE NATIONAL DEBT REDUCED By Telegraph—Press Assn.—Copyright. London, April 15. Reviewing the results of the past year during his Budget speech Mr. Chamberlain said that manufacturing production had established a new record. Exports were up on last year by £30,000,000. Interest rates remained lower and there was a great increase in the volume of capital work, particularly in new buildings. Throughout the year the cost of living had remained substantially below the 1931 level. Retail trade continued to expand. - . , ... There was no diminution in the tnriit of the people, Post Office Savings Banks and trustee savings banks deposits and net sales of savings certificates _ having risen by nearly £50,000,000 during the year There could no no question that the improvement had been progressive and had now become substantial. It was not without significance that this ‘ forward movement had followed a succession of balanced Budgets. The finances of the year showed an excess of revenue over expenditure other than the sum applied to a reduction of the national debt by £19,905,000. In a statement about the national debt Mr. Chamberlain, recalled that in April last at the earliest possible date he repaid £105,000,000 of 4 per cent. Treasury bonds and £11,000,000 of 3 per cent, bonds drawn for redemption in the previous December. To provide for those maturities and to give a small margin for a reduction of the floating debt he raised in April £150,000,000 by the issue of a 3 per cent, funding loan and in December took advantage of the continued cheap money to give notice to draw for redemption one half, or £44,000,000, of the remaining 3 per cent. Treasury,- bonds. Since then 34,000,000 had already been purchased ’ out of the sinking fund money, so that redemption of the remainder, which took place today, would be carried out without any disturbance of the market. The net effect of these transactions had. been a reduction in the normal amount of the national debt by £21,750,000 and of the annual interest charges by £1,650,000. The exchange equalisation account again showed a profit. In view of all the circumstances, and if the interest rates on Treasury bills remained at anything like the present, he felt justified in putting the debt charge at last year’s figure of £22,400,000. That ought to leave something available for debt redemption, but he thought it advisable to again ask for power to borrow for purposes of the sinking fund.