FALL IN STERLING

Hokitika Guardian, 26 October 1932, Page 5

FALL IN STERLING

REASONS GIVEN CONCERTED CONTINETIAL MOVE. Fresn Association—Py Electric Telegraph—Copyright.) LONDON, October 24. To-day sterling fell to 84$ francs and 3 dollars 32$ cents to the pound. 1 The financial Editor of the “Daily Telegraph” says: The setback of sterling is due to, a combination of factors, which originated in mistaken and unfounded impressions abroad regarding our uiieniployment prbblem. MrMacDonald’s*' recent allusions ,i to : - the'question were misconstrued, as evidenced by Signor Mussolini’s speech at Turin. The latter was responsible for some of the sterling selling, on top of the operations by a formidable syndicate. The revival of the war debts question has been another unsettling factor in France. j The same writer also says: The vehemence of to-day’s Continental drive against sterling emanated from Switzerland, Holland, Paris and New York, the total representing speculative gales and actual capital withdrawals being substantial. The franc dropped to 84$ to £1 and the dollar to 3/325. It, was the mosifc tense concerted move against sterling since Setpember, 1931. Its counterpart was the liquidation of British funds, but heavy blocks of stock that were flung on the market were absorbed without difficulty. ?

' AMERICAN VIEW OF DECLINE. -, : ~>; (Received this day at 9.30 a.m.) NEW YORK, October 24. Sterling closed here to-day at 3 dollars 31| cents. This means a net loss of 7 5-8 cents. The pound touched 3 dollars 31 g cents. Bankers regard the fall as being a manifestation of British fiscal policy, rather than as an idication that the Bank o-f England has exhausted the means for supporting sterling exchange. THE PRICE OF GOLD. LONDON, October 24. The price of gold is £6 2s llsd per ounce. THE RECALL OF FRENCH I UNDS. IS BLAMED FOR FURTHER FALL. LONDON, ' October 25. Gold is now at £6 5s 4sd. The further sensational fall in sterling is ascribed by the “Standard 1 ’ to the recall of French funds for impending State leaps, also the hear attacks iii Paris and Amsterdam, based oii unfounded rtmiours that the exchange equalisation fund is exhausted, and that Britain is short of dollars for her December repayments, iThe “Standard” hints , tlint the Treasury bank will shortly intervene with disastrous results to speculator*