EXCHANGE PROBLEM.

Ashburton Guardian, Volume 53, Issue 273, 30 August 1933, Page 5

EXCHANGE PROBLEM.

DISCUSSION AT NEW YORK.

STABILISATION!' QUESTION

(United Press Association—Copyright). .NEW YORK, August 29. It is suggested that Mr George Har- . rison (Governor of the Federal Reserve Bank) and the Right Hon. Mr Montagu Norman (Governor of the Bank of England) have been discussing the advisability of the stabilisation of currency in foreign exchange; but there is not the slightest' hint here that President Roosefelt feels tho time is - ripe for this. ~•,..••■; >.-, .:•■■ .-, •.-■ ' Mr Norman, after an opening series ■■ ~ of conferences with Government officials at Hyde Park, stayed for an hour or more but did not engage the President in private conversation on international financial questions, his visit being purely social. Although Mr Norman kept the nature of his business secret, it is reported that he suggested the advisability of pounddollar stabilisation, which American of- • ■'. ficials again tentatively rejected pending the outcome of their domestic recovery policy.

FRANCE AND GOLD. ABANDONMENT LIKELY. LONDON, August 29. The "Financial Times" in a leading article ', expresses the opinion that, gold is likely to retain its values even if. some European States are forced off the gold standard though it discounts the fear that France may abandon gold. "The Times" adds: "While the suspension of the gold standard tends, to limit the supply, the demand is maintained, which does not look as if further suspensions will necessarily be a prelude to a fall in the price." Recent attempts at stabilisation between sterling and the franc have «hown that Mr Montagu 'Norman's attachment to gold remains firm; for, with Franco still on gold Britain would almost certainly be brought back to it. If France went off gold the British Exchange Equalisation Fund would be likely to suffer a further severe loss after the loss incurred in connection tvitli the dollar. Because of the secrecy in which the, fund's transactions are veiled, it is impossible to make an Axact assessment concerning the dollar transacti6ns, but the loss would probably not "be less than that incurred in negotiating the credit of £130,000,QOO in 1931 in attempting to keep Britain on the gold .standard. These two transactions'have probably involved Britain in a loss of £120,000,000. The Fund totals ' £375,000,000 operated solely by the Treasury and private bankers. SOVEREIGNS AT A PREMIUM. LONDON, August 29. A firm of London bullion brokers paid a man, 'apparently from overseas, £9OOO for 6000 sovereigns which were believed to be his savings for years. ..,