20 F.T. Lloyd-Dodd on Fhictuations m the Foreign Exchanges. 



were artifically supported. Several agencies were employefl for 

 this purpose. 



1. Imports were restricted — partly it is true from shortage 

 of tonnage — but also to reduce the amount owing by us to other 

 countries. 



2. Exports were encouraged in order to increase the amount 

 owing to us. As this did not ])rove sufficient, the next step was 



3. To raise loans al)road. At first sight it seems strange 

 that when the exchange is going against us and because we are 

 debtors, we try to remedy it by getting further into debt. But 

 when we floated a loan, say in the United States, the U.S. became 

 our debtor until the loan had been paid over, and in this way 

 the balance was temporarily put in our favour. 



4. Lastly the Government took over large amounts of 

 foreign securities owned and held in this country, and employed 

 them to create credits abroad, thus lessening the balance of 

 indebtedness. 



By these means the exchanges w&yq prevented from moving 

 too much against us during the war. But in March last this 

 regulation came to an end, and we are now beginning to see 

 where we stand. The position is a serious one. We are in the 

 same case as an individual living beyond his income, and the 

 remedy is the same — Spend less and earn more. "We are a 

 debtor nation and no juggling with figures can alter the fact. 

 The situation is so grave that it calls for all-round sacrifice. It 

 calls upon us for a rigid reduction of consumption, especially of 

 luxuries, thus setting goods and labour free for the export trade. 

 It calls on us to go on saving every penny, and thus to cheapen 

 the supply of capital needed for industry; and it calls on everyone 

 engaged industrially to increase production to the last ounce in 

 his power and thus make a direct contribution to the liberation 

 of the nation from its load of debt. 



Professor Meredith, Queen's University ; Mr. R. G. Geale, 

 the City Accountant ; and Mr. A. H. Muir spoke to the lecture, 

 and the proceedings concluded with a vote of thanks to the 

 lecturer. 



