FALL IN STERLING

Hokitika Guardian, 20 October 1932, Page 6

FALL IN STERLING

THE- REASONS ATTRIBUTED. • ‘ ' ■ - EUROPEAN GOVERNMENTS BLAMED. t United Pmsss Association—By Electric Telegraph—Copyright.) (Received this day at 1.5 p.m.i BERLIN, October 19.

The sudden fall in 'sterling is perturbing business men who fear a check on German exports. The Boersen “Courier” suggests that the weakening of sterling is a British manoeuvre tantamount to the dumping of Britisji exports. Paris financial circles attribute the fall to the cessation of the Bank of England’s . intervention, but believe that the extent, of the rapidity of the fall exceeds the Bank’s anticipations. Nevertheless, confidence in sterling will strengthen after the double settlement hanging over the Treasury in December.

Firstly, the repayment of foreign holders of the war loan; and secondly, the payment of £19,000,000 in war debts to America on December 15. A financial newspaper blames the Continental Governments, particularly Switzerland, Belgium, and Holland, for selling sterling to protect their own currencies.

Foreign banks are also unloading sterling holdings in order to save themselves from losses similar to those when Britain left the gold standard. American interests are selling sterling ..for election campaign purposes, as the Republicans desire to sustain the dollar at expense of sterling. Finally, continental investors are withdrawing money from Britain owing to the low interest rate's prevailing. OTTAWA, October 19.

Mr Bennett announces that the Government is considering a five cents per bushel bonus for prairie wheat.