BRITISH CREDIT

Hokitika Guardian, 7 August 1931, Page 6

BRITISH CREDIT

FALL IN STERLING. (British Official Wireless-) . ' ' .' . i RUGBY, August fi. An unexpected fall in sterling on the foreign exchange, this morning, followed by a sharp rally in the afternoon is attributed by the Press to renewed uneasiness in Paris regarding the German situation. However, according to to-day’s advice from Berlin, business attending the reopening of the banks was normal, and the general reports are reassuring. LONDON, August 6. The financial papers admit that the ‘London and Continental markets are puzzled by the fall that is taking place in sterling the general accepted explanation is that, in view of the new fifty million credit, the Bank of France has withdrawn its independent support of sterling, which, support has recently held! the franc around 123 point ninety before arrangements were fully made here to assume control of the exchanges. LONDON, August 6. “The Times,” in an editorial says: “No importance need be attached to the erratic movements of sterling which are more spectacular than significant of weakness. They have been due to technical changes in the market for sterling, in which there was a' distinct recovery before, the market closed. The, Bank of England, according to the rules of the game, should have lost gold, but the fact is that the Bank, despite the lowness of the exchanges, has received gold to the value of £1,200,000 sterling, some of which came from Paris. This shows that the Central Banks are anxious to discourage the taking of gold, l from London.