PROOF OF STRENGTH.

Wairarapa Daily Times, 27 January 1932, Page 5

PROOF OF STRENGTH.

Press Association Electric Telegraph Copyright LONDON, Tuesday. The Bank of England announces the repayment on January Ist of credits of £15,000,000 each, the balance of £50,000,000 advanced by the Federal Reserve Bank of the United (States and the Bank of France in August to assist sterling exchange. Tho repayment does not involve a reduction of the bank’s gold reserve or increase in the fiduciary issue.

“The best news the market has had for months,” says a leader in “The Times,” referring to the repayments. “It is a notable sign of the Bank of England’s strength, demonstrating confidence in its resources, especially when many banks throughout the world are gravely embarrassed. “It will increase British financial prestige and prove tho pound’s ability to maintain its position. Indian gold arrivals have, now reached £50,000,000, and indirectly are helpful.” BRITISH SINCERITY. (Received Wednesday, 5.30 a.m.) LONDON, Tuesday. The “Morning Post’s” financial editor says the Bank of England’s announcement yesterday marks the completion of the transaction which, together with the credit obtained by the Government, will always stand as a record of the sincerity of Britain s attempt to maintain the gold standard against overwhelming odds. Repayment, without resort to gold shipments, shows the skill with which exchange operations have been conducted. the fact that no renewals of loans were sought indicates a strong position. There remains outstanding £40,000,000, which the Government obtained from Franco and the. United States in August for a year.INTEREST REDUCTION.

LONDON, Tuesday

The “Daily Express” city editor understands that a gigantic conversion scheme for the whole national debt is under consideration, and that the greater part of a contemplated saving in interest payments equivalent to eighteenpence in the pound in income tax would be passed on to the taxpayers. A similar plan was carried out in Australia, where Government stocks stand at a higher level to-day than before conversion. UGANDA LOAN UNDERWRITTEN. LONDON, Tuesday. A Uganda Government loan of two millions at 5 per cent and at an issue price of £96, has been underwritten.