" ON THE VERY EDGE OF BANKRUPTCY "
[To the Editor of the SPECTATOR.] SIR,—Even in the midst of an election I must protest against your use of the words " on the very edge of bankruptcy," as applied to this country. By no conceivable test which you would apply to an individual can these words be sub- stantiated.
First, this country's assets vastly exceed its liabilities. Even if you omit all our enormous internal wealth, our holdings of foreign investments alone are several times as great as our foreign liabilities. Secondly, the trading balances show that up to the end of 1930 we were still increasing our net foreign wealth. The fact that the reverse is expected to be the case in the current year owing mainly to the fearful depression of the countries in which our money is invested naturally causes us grave anxiety but it does not make us nearly bankrupt. Thirdly, the fact that the British State's budget would have shown a deficit next March is no evidence whatever that the country as a whole is spending more than its income, and I do not believe this to be the case. But even if I am wrong, you certainly would not call a rich man " on the very edge of bankruptcy " because in a year when, in common with all his neighbours, he was suffering unprecedented, calamities, he did not conform to the strict practice of living within his income.
In view of your large and influential body of foreign readers surely it is wrong to use such misleading words about our country, which in the midst of a world crisis is probably in a stronger financial position than any other.—I am, Sir, &c.,
[We are content to refer Mr. Lawrence to the words of the Chancellor of the Exchequer under whom he served. In his address broadcast on the day after our issue appeared Mr. Snowden said that we were " on the edge of national bankruptcy."—En. Svectator.]
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