PURCHASE OF GOLD

Evening Post, Volume CXXIII, Issue 131, 4 June 1937, Page 9

PURCHASE OF GOLD

RECORD FOR A DAY

EXCHANGE EQUALISATION

FUND

(Received June 4, 1.10 p.m.)

LONDON, June 3.

'■ The largest, amount of gold ever offered in a single day was bought by the Exchange Equalisation Fund— £2,565,000.

It is believed-that a large part of this sum emanated from foreign hoarders, who were alarmed at the continued rumours of a decline in the price of gold.

The Exchange Equalisation Fund was established by the British Parliament in 1932 with authority to borrow £150,000,000 in order to buy and sell foreign currencies so as to keep sterling steady and prevent disturbances in the money market through the action of speculators. The Fund also took over ;the balance of the wartime dollar fund. In 1933 the amount of the Fund was raised to £350,000,000 owing to the "bulling" of the pound by timid capitalists in the United States and in the gold bloc countries, particularly France. In 1934 a similar fund was set up in the United States and a stabilising fund was established in France last year after she left the •gold standard. The currency agree; ment which came into force last October between Great Britain, France, and the United States was to ensure that the three funds would maintain a practical equilibrium amongst currencies. Other currencies have come into line •with those of the three great financial Powers.