The sun., 1919-10-31
BRITISHEAGER TO
ADJUST FINANCES
-
Sterling Sterilization Hoped
For as Outcome Of Parlia-
ment Debate.
HELP TO TRADE SHOWN
Great Britain Planning to
Supply Russia With Raw
Materials.
HELP TO TRADE SHOWN
specisI casie Despatch TO TIE Sun.

CoBuftQnIs lhlD. loa Ft0ftts Fc<c'sct.
LONDON, Oct. 3o.--The whole financial
ana business world is awaiting the OUT
come Of the debate In Parliament yester-
day on the status Of the British Govern
ment's finances. There 10 keen interest
In the measure to be proposed reducing
the quantity Of paper money BY a long
term loan; this naturally will have a
stimulating effect on sterling exchange;
any move to stabilize the buying power
OF sterling has deep significance, as II
is linked with the present military OPP
trations In Russia and also with British
relations to German trade.
II Great Britain intended to rely
solely on her exports to regain pre-
dominance In world commerce. big
discount on sterling would be advan-
tageous, but she has n bigger object
than that in view. Failure to conquer
the Soviet Government Of Russia would
bring up the question of lifting imme-
diately the blockade OF that country !;
with the blockade lifted Russia would
b flooded immediately by German ma
chinery.
Great Britain plans to supply Russia
with q large quantity Of raw materials
to keep this machinery going and such
raw materials would be bought by Eng
fish traders IN foreign markets and sold
to Russia on credit. This buying Of raw
materials abroad by Great Britain nat
uraily could be done more advantas-
eously with the pound sterling at
higher rate
The British policy for several months
has been to supply the continent chiefly
With finished goods; this now Is recog-
nized as an error and 1t Is held to be
chiefly responsible for the weakness Of
the German mark. Most OF the ship
ments to Germany have been Of CON-
pleted articles, and as a result Germany
has been obliged to pay larger amount
than she would have paid Y the raw ma
terial had been shipped and her own
factories had been allowed to manufac-
ture the products.
The tactics of America In supplying
Germany with raw materials instead OF
finished goods Is one of the principal
examples to be followed here. Raw ma
terials from the United States and
France, with what little has been OBJ
tanned from Russia, form the only basis
: scpon which Germany SO far has beer
able to start reconstruction Of her ex.
ports.
Marks are selling here at ISL to the
pound, or three and one-tenth cent.
each, but since sterling is 1t discount
marks really are selling below three. ant
this should be the rate In New Yorl
through arbitrage. This low rate To-
the mark greatly hampers the German
1znports of raw materials. Although sen
fimentally the British do not care how
low the mark goes economically the,
realize that the prosperity OF all Europe
depends upon the quick rehabilitation o.
Russia and Germany. Therefore the,
want to see the buying power Of thu
mark and the ruble appreciate.
fNApart from this broad aspect IT the
Nttish nations financial position the
dekision which Parliament is to make
dh' the national debt also is namperine
Individual enterprise In reaching out. a,
Il always has done. to all parts of the
world to develop business. The greatest
fpkbear is the proposed capital levy
which. II put through. would confiscats
enormous gums of money already figured
on for use In foreign fields
Another problem coming up in Parlia
ment will be the restriction Of imports
There are two factions one wants ex
treme protection of British goods thu
other wants absolutely free trade I
Il believed that a middle course will b.
taken, by which the present policy o.
moderate restrictions viii be adhered to
The chief reason for refusing to increase
restriction is that Great Britain fear
retaliation from other nations