WORLD CURRENCY

Hokitika Guardian, 17 June 1933, Page 5

WORLD CURRENCY

U.S.A. AND BRIT AIN , ■ i, ■ t i A GENTLEMAN’S AGREEMENT. ; A V .. ; ; l (Ur'ted Press Association—By Electric Telegraph—Copyright.)’ ! LONDON, June 16. V- The “London Mail” says th.t it is l definitely decided that the Bank of f Ehglahd and the . American Federal [Reserve Bank -will conclude a gentleman’s agreement ;for the 1 'temporary stabilisation of ’ the st'enling J and dollar. The rate is still undecided, but i--will probably b© 4.05 dollar's i n the £. It .is understood that Mr Moret has pledged the Bank of France to a - - both England and A.perica fo maintain the agreement, thu s enabln-ig the pre-stabilisation which is necessary cs &' - prelude to the final stabilisation based on the now gold .content of sterling, / The “Chronicle” says this is a \ gentleman’s agreement, and does not mean that either sterling or the dollar will be ‘linked to gold. . It i s doubtful whether .the figures'-at which the exchange is stabilised will be announced. There is. ho indication that , the American representatives can guarantee that'America will not. be forced to devaluate, if .stabilisation checks the inflationary boom. The “London Chronicle’’ s ay s that M*. Neville Chamberlain is informing tile market ‘that he {does not .‘wish money to leave England to purchase American 'securities, thu s extending the Treasury ban. • 'll is not intended to interfere with dei(i''iings in' .the American . shares -al-, ready held by Britain, but unless the j market . .arbitrage difficulties are over-, cpme, London price,? of American I gha.t*es will be divorced from those of' New York’s. I The Chancellor of the Exchequer is seeking the co-operation of arbitrage dealers, but his request has not the* force of laiv. Mr Chamberlain’s re-quest-to the;-market .suggests that the authorities, realise that the- British | pound is ,at present overvalued, to thedetriment of British exports, .and suggests that Britain made a rash bargain 401 an endeavour to patch up pn awkward failure at the. outset of the conference, to’ reach a durable agroeeriifeiit. • <

CHAIRMEN OF 'COMMISSIONS. '. MONETARY AND ECONOMICS. ■ • ■ ’..f.' rugby, June 15. [The World. Economic Conference, ac-! cepted the Tocommondation of the Bureau, that Mr Cox (United States) should preside over . the monetary commission, pnd that tile vice-presi-deftf* Should be Signor Jung Dt-alv), and. Dr Kienbock (Austria), with M. v jj-mnet (Franc?) as rapporteur. J If also that Dr Col fan (Hoilaiid) shc*t!d preside over the econom'te ■ and ; trade commission, with Herr EHgmann . (Germany) ;and Don Le- ; bre-fan (Argentine) as vice-presidents. ! The general discussion .continued, thrmighont the day. | Mr Connolly (Xve'and).. suggested •exploration of the possibility,; of mW ipg the Bank of International Settle-ments.-the agreed clearing-house 'far international 'exchange )and transfers. | and the. co-ordinat-'on of its activities with'the central banks jn a'l countries, ‘lie thought that gold should be yird-stlck cf lvalues, and the ultimate factor of the settlement of balances. He would like to see. the development of an international clearing-house i edinmoditieg. j ‘Tewfik Bey (Turkey) em- , phasised the importance of international 00-operation. Alberto Panl (Mexicol desired to see the rehabilitation of silver and the • stabilisation of its price. ,M. Salnaia (Latvia) -advocated ? gradual reduction of tariffs, 'in the first place ,on agricultural products and raw mater,jails. I)r Dallas (Estonia) maintained that countries should be placed in a position to pay their obligations in goods and services. ITHE- CHANCELLOR’S STATEMENT. I/' a COMPLETE- REASSURANCE'fa, ' LONDON. June 16. , “The Times.” in -a leader,' sa Y s ( that' Mr .Chamber] nin’e statement should completely return anxious souls who may be lesthe British should be r ush;d mto * i ■pvemature return to the gold standard, j Few will cavi'l at. the British decision to -remain off gold ’until there n reasonable certainty of the. <stnb ity of oxclrneos arid. n higher pr’ce level. The debtor primary producing rountries have only too much reason to know that the post-war gold rtandard j has become an ind-a-rubber foorum. j Many of Mr Chamberlain’s c°nfat’ o ns L*- for a return to gA r l are incap-a e early fulfilment. The -wl merit <>■ tho statement i s that it clears the a-r and enables the delegates to fOncentrate on the approximate stability between the principal ««' ,1» on meaenres to seenre the tions necessary for the r-wo ..-‘s mc »t of an international standard. POLLAR AND STERLING. tendon. juwo u>. T t, Prp i s n .■>or°'=tont report that the •tank of England has issued a mn--w- f'dontial letter, advising stock brokers T in t.lm mari •: of dollar < enl-o-.. It Jp w idelv interpreted as heralding the

stabilisation of the dollar and stoiling, but another view is (that it is merely discountenancing heavy commitments, pending developments. WHEAT acreage reduction. \ _ (Received this day rt 1C.30 a.m.) | .SYDNEY, June 17. The “Telegraph” says the suggestion 0 r "r RcmrtE of Canada for a >’odiic J ’lon in wheat acreage will be opposed by Justralia. Definite instructions to that effect have been given to the Australian delegates to the world 1 wheat ccnUrence, Mr McDongall.