STERLING RISE

Waikato Times, Volume 127, Issue 21218, 14 September 1940, Page 8

STERLING RISE

FUNDS OF DOMINIONS

NEW ZEALAND SECOND ESTIMATE OF £19,750,000 (United Press Asn.—Elec. Tel. Copyright) (Received Sept. 14. 3.15 p.m.) LONDON, Sept. 13 The contributions which the Dominions have made towards financing the United Kingdom’s Budgetary deficit through increases in their London balances have recently attracted attention. The Economist calculates that India, New Zealand, Australia, South Africa, Egypt and Eire have together increased their London sterling by £89,000,000 to £90,000,000, which represents 40 per cent. The Manchester Guardian says the increase is undoubtedly a most useful aid to British war finance. India has contributed most toward the expansion, with New Zealand next. The Economist estimates that New Zealand’s sterling assets are £19,750,000, compared with £7,110,000 before the war. On the contrary Australia’s increase is singularly small.

Financial circles do not expect the expansion of the Dominions’ overseas assets to proceed much farther. Among the reason for this is the flow of gifts of one kind or another from the Empire to the British Exchequer.