[?]HED CLOSELY

Rotorua Morning Post, Volume 2, Issue 419, 31 December 1932, Page 5

[?]HED CLOSELY

oflicial Wiretass)

Ihpress comment

jSHec. Dec. 30. Rugby, Dec. 29. do-dayV development in African financial situation ioeh ha been aroused in ireles in London continues, are being watched closely. ;) change was ^made in ites of exchange between :a and London yesterday, ;as confined to very small s. At the close of the idiange to-night South ining shares remained on :de, awaiting further news 'ie change d position. ses, conimenting on the. an cuiTeney position, says, a be little doubt that the it's change of policy will ath Africa by removing a iapediment to oyerseas to intercourse with her leighbours, enabling farmoatlast the advantages of sons which Mr. Havenga, f Finance, obtained at OtNature of Policy of course, depends upon the the new policy — whether (exchange is to be allowed Jwnlevel or whether South irrency is to be linked again '.oagh at a lower rate. It is 1 alteraative which at the :eems niore probable, but )n raay be affected by des in the political situation, itill quite obscure." mehester Guardian's finan- ? says: "The legal position he same as that in England ter, 19.11, for in one sense ' the gold standard which Dded in Britain last year, fte gold convertibility of England notes. The South Government's intentions future of eurrency are not nothing has been said yet ■e that the South African Ibe devaluated. On the conb steps as have been taken 'atthe priiiiary objective of nment, at least for the time to prevent depreciation of wsulting from the flight of r which fundamentally there ®omic justification. It does p that by funding gold conM the note. issue South r thereby depreciate her f