STERLING IMPROVES

Manawatu Standard, Volume LIII, Issue 17, 17 December 1932, Page 8

STERLING IMPROVES

3.15 P.M. EDITION

m CONTINUED FAVOURABLE MOVEMENT. (United Press Association—By Electric Telegraph—Copyright.) (British Official Wireless.) Received December 17, 1.20 p.m. RUGBY, Dec. IG. Sterling strengthened to-day on all centres. The New York rate closed at 8.30 7-8, comnared with 3.28 7-8 last night. City comment attributes the continued favourable movement to the influence of yesterday's debt payment and an indication that no immediate increase in the fiduciary issue is intended or will be necessary. There was considerable buying on French demand.

TRUSTWORTHY MEASURE. VIEWS OF BANKERS. ‘‘lt is noteworthy that the pound has been a more stable and therefore a more trustworthy measure of the vnluo of goods than gold itself,” said Sir E. Hilton Young, British Minister of Health, who represented Mr Neville Chamberlain at the bankers’ dinner in London recently. “Sterling has been found to have an inherent stability of its own. The basis of that inherent stability is the stability of our national institutions and our national character.

“You will expoct me to prophesy,” Sir Hilton continued. “No one can say exactly what the future of tho pound is likely to be. What can be said is that wo would prudently return to gold only when it were made clear that the gold standard was going to work properly. We must have a rise in the general value of wholesale commodity prices to a height more in keeping with the level of cost and an adjustment of the factors, political, economic, financial and monetary, which have caused its breakdown in many countries.

“We must not imagine that our difficulties are all overcome. Time is required for the Government policy, both in regard to tariffs and in regard to conversion, to work through to the industry of the country. “The growth of unemployment, which was arrested -during September, and remains, I believe, arrested to-day, must still give ground for anxious thought. “The more the Government and public authorities can save by reducing rates and taxes the more the rateSayers and taxpayers will have at their isposal for wise spending.” FROZEN CREDITS. Mr Montagu Norman, Governor of the Bank oi England, replying to tlie bankers’ toast, pioposed by Major-General J. E. Seeiey, said: “One of the great things or which we, speaking technically, wish to dispose are tne frozen credits throughout Europe. I think there is nothing which impedes the business ana prospects of uankers to the same extent as those. Hoiv it is to be achieved I do not know, but 1 believe that trade will find its way in almost any direction over or round almost any tariff if it can be financed. But it the bankers’ credit in any of the countries is frozen up and the exchange opportunities in these countries are not available, then trade with those countries, as 1 have seen, is extremely difficult. “In the past we were by tradition, by reason of our means and by reason of our ability great lenders. Can that continue with the same freedom in the future ?

“The time will come when great opportunities for investment, speculative business included, will he offered in several places east and west of here. It has happened before. It will happen again. “What we need and shall need when that time arises is a robust and rationalised industry and commerce, which here can offer tlie same attractions by way of investment as will assuredly be offered in those other countries.” Mr Norman referred to tlie “class of banker” whose business lies largely overseas, who, he said, had been generous lenders on short credit overseas. “They have done this,” he continued, “each for himself and without co-op-eration of any knowledge by one of what tire others are doing. “The result has been that in many instances concerns liavo been able to borrow on short credit sums which, had the,various lenders been aware of it, would have been quite out of the question, and which lias come as a surprise to all of them in this country, and abroad. LOOKING FORWARD.

“I look forward in tlie near future to a growth, development, and improvement in the industry of this country on which, in large measure, tho business of bankers and merchants depends, and upon which we can rebuild the eminence which we enjoy and received from our fathers.”

He urged that, in future, this should be done on some basis of general cooperation to the interests of all. “I believe in the old motto that “United we stand, divided we may fall!” he added.