DEBT PAYMENT
MISCONCEPTION EXPLAINED. United Press Association—By Electric Telegraph—Copyright LONDON, December 22. Replying to the Chambers of Commerce representatives, Mr Neville Chamberlain emphasised the misconception that the payment to America correspondingly contracted currency. He saw no reason to anticipate a shortage of credit, or the necessity for increasing the fiduciary issue.
Banks’ Gold Holdings. Mr L. Hore-Belisha, in a House of Commons debate, mentioned that between May 11 and December 14 the banks’ gold holdings had increased by an amount almost equal to the payment to America. The notes in circulation had increased in the same period from £358,000,000 to £372,000,000, and the cash at the clearing house, from £179,000,000 to £190,000,000, so that credit was notoriously abundant.
Furthermore, instead of foreigners selling sterling in consequence, there was a reduction of £20,000,000 in notes in the Banking Department, and they were actually buying, so the worst anticipated had not happened.
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Bibliographic details
Timaru Herald, Volume CXXXVII, Issue 19374, 24 December 1932, Page 17
Word Count
150DEBT PAYMENT Timaru Herald, Volume CXXXVII, Issue 19374, 24 December 1932, Page 17
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