4 JULY 1931, Page 38


With regard to financial and political conditions at home, it would be rather difficult to say whether there is more or less anxiety concerning the position than there was at the beginning of the year—possibly rather more— for in the meantime we have had another disquieting Budget, we have had a very serious statement with regard to the trend of the National finances made by a representative of the Treasury, and most serious of all we have seen an interim report of the Royal Commission on Unemployment given scant attention by the present Government. Its recommendations concerning the dole were urgent, though moderate, but there are no signs at present of the Government hastening to carry them out quickly. On the other hand, there are not wanting signs of the position of the Government being weakened by the split in the Liberal Party. In the opinion of the City a change of Government would, of course, be regarded as a favourable point as regards the outlook for the second half of the current year. Possibly I should agree with the City, but not without the fear that any zeal for economy on the part of whatever Government took office might evaporate by the time that the Election. was over.

I should be inclined to take a moderately hopeful view of the outlook for the second half of the year, but I should base (Continued on page NI

_ Finance—Public and Private

(Continued from page 34.) any optimism entirely upon the hope that the breathing. space afforded by the War Debt Moratorium plan would be used by some, if not all, of thexarious nations affected by attending to those shortcomings which individually and collectively have contributed to the world depression of the past eighteen months. ARTHUR W. KIDDY.