SERIOUS RISKS.

Auckland Star, Volume LXII, Issue 230, 29 September 1931, Page 7

SERIOUS RISKS.

GAMBLES IN STERLING.

Chancellor of Exchequer Gives

Timely Warning.

CURTAILING CREDITS

(British Official Wireless.)

(Received 12.30 p.m.)

RUGBY, • September 28.

The possibility of an early election was much discussed when "the Stock Exchange opened this morning and operatox*s showed a disposition to await developments. Trading was consequently on restricted lines, but the general tone was favourable and steady.

Among foreign exchanges the Swedish kroner weakened to 17 to the £1, following Sweden's decision to drop the gold standard, but the Norwegian kroner was unchanged.

Among British funds consols, 4 per cent rose 10/ to £80 10/, while war loan 5 per cent stock was steady at £93 10/. Treasury bonds were 10/ to. £1 better but conversion 3J per cent 1 and 4 per cent each lost 10/.

Questioned as to whether the Government was taking steps to prevent foreigners gambling in the pound sterling and forcing its value down in terms of foreign currencies, the Chancellor of the Exchequer, Mr. Philip Snowden, in the House of Commons, said: "The essential steps already taken are to balance the Budget, to set our faces against any sort of inflationary measures and to control exchange purchases by persons resident in this country.

"It is not desirable to prevent the realisation of sterling assets by foreign holders at a sacrifice if they decide to do so. . As regards speculation, persons who sell sterling at figures well below its intrinsic value are incurring serious risks, and the remedy will come quickly Enough when they , begin to make losses.

"In the meantiniff 'it. is essential that speculative operations. should not be assisted by allowing foreigners or their nominees to obtain new sterling credits in this country. In this connection I welcome the decision of the Stock Ex* change Committee to limit transactions to cash dealings."