31 MAY 1930, Page 42


At the annual meeting of Hambro's Bank, Ltd., on Thursday, Sir Eric Hambro, the Chairman, who presided, corrected a fallacy which often appears in discussions regarding the functions of capital, namely, that the investment of British capital in -foreign loans deprives British industry of needed capital. When a foreign loan is issued in London the proceeds can only be made available to the borrOwers in sterling, and that sterling can only be transferred into foreign money by purchase of British gaods or'services, a repayment of debt to this country or an export Of gold, and Sir Eric pointed out that this latter method only operates as a last extreme, though, of course, funds for foreign investment were derived from the country's active trade balance. This was not unlimited, of course, but the Issuing Houses knew well enough when the margin of safety was likely to be reached, and the point he particularly emphasized was that it was just as important to finance the buyer of British goods as to finance the seller.

A. W.- K.

It is announced that Mr. E. W. Beatty, Chairman and President of the Canadian Pacific Railway Company, has joined the Board of the Sun Life Assurance Company of Canada.