STERLING FALLS
NO CAUSE FOR ALARM DROPS TO Us ABROAD. [United Press Association—By Electric Telegraph.—Copyright.] LONDON, December 1. London stock markets opened the listings brighter to-day, encouraged by Wall Street, and a certain amount of 1/beaaT ,coveilg. The leading British funds are one-eighth to a-quanter better in places, despite sterling's fall to 2.28] dollars. Commenting on the fall in the pound “The Times” emphasises that the movement is wholly out of relation to the volume of business, and there is no cause for alarm. It states ; “A number of temporary or artificial factors ape operating in the market at present which account for the lack of support. Prominent amongst- them are the restrictions placed upon dealings in exchange in foreign countries, which prevent foreigners in many cases from buying sterling, though no difficulties are placed in the way of the British importer paying for his purchases abroad, and selling sterling. The fact that the war loan dividend will be paid •to-day, also may have caused some foreign holders .to se.li' sterling, These factors are sufficient to cause tile fall but have no important significance.” LOWEST IN TEN YEARS. NEW YORK, December lThe pound sterling, to-day, continued the abrupt decline, breaking more than nine cents to three dollars thirty cents, the lowest in ten years, and only twelve cents above the record low quotation of 318, reached prior to the return after the war to the gold basis. Selling continued from all sides from Britain, France, Holland and other principal' financial countries. According to advice from Wall Street, no efforts have yet been made on .the- part o-f the British Government to stabilise the pound, the present intention, apparently, being to let it seek its natural level. Although French bankers and the French Government are said ito be favourable to -stabilisation, and are reported from Paris to be willing to advance credit, Wall. Street bankers doubt that such a move will be attempted at an early date. Britain's foreign trade, according to reports, is being stimulated by the ibwer parts of sterling. The pound closed at 3.21, and the Canadian dollar at 86],
POSITION AT NEW YORK
LONDON, December 2
“The TimesV’ City Editor says: , ■Continental selling has chiefly been re- j sponsible for 'the further spectacular , fall in the pound. The New York j vate of exchange on sterling touched j the) lowest point since the year 1920. The amount of business transacted was comparatively unimportant, to which the dealers do not attach much signi« ficance. The movements of sterling on the market at present are so limited that the offer of even a small sum in sterling depresses the New York rate. The position is now better understood ithan it was on jthe Stock Exchange on Monday, his accounting for, .a brighter tone in the markets. tariff declaration. URGE MADE TO GOVERNMENT. (Received this dav at 9 c LONDON, December 2. “The Banker,” urging the Government to make ,an early declaration of its tariff intentions, says that the delay will not only beset the business of the financial world with uncertainty, but also making a forecast of the stabilisation of the sterling impossible. The longer the delay, the greater will be the opportunity of forestalling the tariff. The Government ought to await the Ottawa- Conference but should ask it to fit the recommendations into Bifitains’ tariff policy- < OTTAWA CONFERENCE. SPEEDING UP OF PLANSLONDON, Decmber 2. The “Daily Express” lobby contributor says * that the Government fe speeding up its plans for the Imperial Conference which, it is hoped, will e held early in July. add sterling PUBLIC CONFIDENCE. IN BRITAIN’S CREDIT. (Received this day at 9.25 a.m) LONDON, December 2. The “Financial News” is of opinion that the political factor of seasonal influences, and the withdrawal of foreign balances are all likely to continue to work against sterling for at least another month. Sir Neville Chamberlain speaking at the London Conference in connection with the national savings movement, gave remarkable testimony of tliepublic’s unshakeable confidence in British credit. He said that throughout the recent crisis, no more than one-tenth ' of one per cent of the people s savings with the Government which amounted to the astounding figure of £1,100,000,000 was withdrawn. RATES OF EXCHANGE. . MATTER OF GRAVE CONSIDERATION. MELBOURNE, December 3 . Sir Robert Gibbon, Governor of the
Commonwealth Bank announced that the question of exchange between Australia and London had been a matter of grave consideration for some weeks. The position was complicated by the decision oi Great Britain to depart from the gold standard, and there had been a continuous steady depreciation in sterling. It had now been decided to lower ex•ehance rates as follow: —Buying £125; selling £125/10/-. The figures hitherto were £l3O, and £l3O/10/-. New Zealand rates—Buying £ll3 12/6 in Australia for £IOO in New Zeaj land. Selling, £ll'4/T7/6 in Austra- ' lia for £IOO in New Zealand. THE RATE OF EXCHANGE. PLEASED WITH REDUCTIONS. (Received this day at 10.15 a.m.) LONDON, December 2. Although the newspapers published an announcement of the reduction m Australian exchange, the banks have not been notified of it officially. Finan- | oial circles are pleased with the reduction, which they regard as tangible evidence of the improved conditions in Australia. POLICY OF PROTECTION. WOULD IMPROVE POSITION. (Received this u..y at 10.30 a.m.) LONDON, December 2. “The Government is still fiddling while the pound 'is sinking, and industrial chaos continues” said Sir Hugo Hirst the electrical luncheon. He added: “If foreigners realised that we intended a proper policy of protection, the money would cease migrating, and dollars and francs would come to Britain and the result would be safe. He emphasised it must be the right kind of protection enabling a mass production and reorganisation of depression in industry pending. He hoped no agreement would be made with foreigners. Moreover, before the Government negotiated with foreigners they must be clear about Imperial relations. The Dominions could only be linked up under the proper kind of protection. Other helpful schemes included the stabilisation of silver. “I am satisfied protection is introduced that the pound will rise and eventually be able to look the dollar and franc in the face. Whether we ketp off the gold standard is immaterial.
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Hokitika Guardian, 3 December 1931, Page 5
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1,033STERLING FALLS Hokitika Guardian, 3 December 1931, Page 5
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