BRITISH FINANCES

Wanganui Chronicle, Volume 84, Issue 16, 19 January 1940, Page 5

BRITISH FINANCES

j CONSERVING AMERICAN DOLLARS AVOIDING PRICE AND W AGE SPIRAL Received Jan. 18. 8.55 p.m. ■ LONDON, Jan. 18. I I In order to conserve the supply of, I American dollars, the Government has [instructed tobacco manufacturers to’ I cease importing American tobacco, | The national savings appeal realised £62,000,000 in eight weeks. A report of lhe Trades Union General Council denies responsibility! for starting what has been called a vicious spiral, which it has been suggested might, if unchecked, develop! on the lines which occurred in the, last war .when wages tried in vain Io [catch up with the rise in food prices. I Recalling Ihe address of lhe ChanIcellor of the Exchequer, Sir John [ [Simon, to the joint advisory councilj emphasising the desirability of avoid-i 'ing a spiral the report notes that in-[ dividual unions and not the council! (itself were responsible for wages ne-1 [gotiat.ions and added that in order to prevent the spiral the council had pressed strongly for an extension ot rationing to the greatest practicable limits and for the most rigid control of prices and profits. REP AYMENT OF BRITISH LO*N ! CONVERSION TO SHORT TERM; URGED INTEREST AT 2 PER < ENT. [ British Official ’Wireleß*. J RUGBY. Jan. 17. I The Chancellor of the Exchequer, I Sir John Simon, announced in the I House of Commons the repayment of 41 per cent, conversion loan 1940-1944, issued in 1924. Formal notice of repayment at the earliest date for which option was gixen to the Government in terms of the loan will be gazetted to-night, and holders are being offered as an alternative to the repayment conversion* at par into a new loan—a short term 2 per cent, conversion loan to be repaid at par on July 1, 1945, with the right to the Treasury to redeem at par in whole or in part on or after July 1, 1943. Sir John Simon expressed the fullest confidence that holders wouid convert to the fullest possible extent.