CURRENCY DEVALUATION

Evening Star, Issue 22464, 8 October 1936, Page 9

CURRENCY DEVALUATION

AMERICA’S POLICY STATEMENT BY PRESIDENT Press Association—By Telegraph—Copyright WASHINGTON, October G. President Roosevelt indicated in a Press interview to-day that if ho is re-elected ho will ask Congress to extend his legal power to devaluate the currency, which normally expires on January 30, 1037. Ho staled that the primary purpose of the American currency policy was to protect domestic values, for which reason emergency powers should be invested in tho Government to prevent the destruction of domestic values through the unexpected action of other nations. • The inference is drawn from tho reference to an emergency that he is not contemplating further devaluation under existing conditions. BANK OF FRANCE INCREASE IN GOLD STOCKS. PARIS, October 7. To-morrow’s statement by the Bank of France will show that there has been an increase of 17,000,000,000 francs, about £162,000,000, due to devaluation, and it is expected to show a large increase in gold stocks, possibly 2,000,000,000 francs. Three aeroplanes have already brought cargoes of gold from Brussels in addition to a shipment which arrived at Alarseilles. LONDON FOREIGN EXCHANGE MARKET (British Official Wireless.) RUGBY, October 6.

A feature of the foreign exchange market was the resumption of dealings in Italian lire, the rate being quoted at 92.9-1. When the lira was last dealt in on September 25, tile closing rate was C4g. Tho stock markets were quieter, but the tone was confident. Currency devaluations on the Continent having cleared the air, British Government stocks were quieter, following the announcement that underwriting is about to take place for the Manchester Corporation of a 3 per cent. loan of £5,000,000, repayable 1958-03. STERLING STILL FREE FRENCH ACTION WELCOMED BY BRITAIN. (British Official Wireless.) RUGBY, October 7. (Received October 8, at noon.) Mr Neville Chamberlain, in a speech at a dinner given by the Lord Mayor of London, said there was some indication of improvement in export trading during the 12 months, due more to prosperous conditions in countries which formerly were good customers of Britain. The step taken by the French Government and tho assurances given by the-British and United States Governments that readjustment would not be followed by any deliberate depreciation of the pound sterling or the dollar was like the cracking of the ice at the approach of the warmer season to a polar explorer whose ship had been frozen for many months into immobility. Sterling was still free. It was not linked to gold or any other currency. There was no alteration in the credit policy necessary to preserve the internal prosperity of this country or other countries in the British Empire. “We welcome most heartily the announcement by ,the French Government of its desire to follow up the reduction in duties and the abolition of certain quotas, which it has already effected, by the elaboration of a new Customs tariff, from which quotas will be entirely excluded.” He added that he thought it very unlikely that they were in for any new system of managed currencies, but before they returned to gold they must provide security against violent fluctuations in the value of gold as expressed in terms of commodities, which occasioned so much disturbance in recent years. “If we can do that—and it is a matter for further international co-operation—then I do not see any insuperable difficulties in the way of our ultimately arriving again at a currency system based on gold. REMOVAL OF TRADE BARRIERS (British Official Wireless.) RUGBY, October 7. (Received October 8, at noon.) Progress in the movement for the reduction of trade barriers following realignment of currencies was demonstrated again at to-day’s proceedings of the Second Commission of the Assembly. Tho Swiss delegate (M. Stucki) said his Government hud devalued, principally to show its willingness to participate in the international gesture towards economic recovery. He announced that Switzerland would progressively reduce her tariffs. The Czechoslovakian delegate (M Vevorka) said his Government had taken up study of the question of abolishing exchange control in order to secure abolition as quickly as possible. M. Van Lanschot (Netherlands) intimated that his country had abolished quotas on leather, furniture, and linoleum, and that other quotas would be withdrawn as a step in the direction of wiping out hindrances to trade. “Good evening, Miss Zimmerman!” “ I am not Miss Zimmerman. “Beally!” “Yon might at least apologise for the mistake.” “ I. will as so:;u as i see Miss Zimmerman. '