CURRENCY STABILITY.

Auckland Star, Volume LXVII, Issue 272, 16 November 1936, Page 7

CURRENCY STABILITY.

AMERICA'S PRECAUTION. British Official Wireless. (Received 12 noon.) RUGBY, November 15. Much interest was aroused in London by President Roosevelt's announcement that the Federal Reserve Board and the United States Treasury would study and, if possible, draft necessary legislation to deal with the potential danger represented by huge holdings by foreign investors and speculators of American stocks. ' It had been suggested that difficulties might become acute if fc*oign holders decided to dump their securities on the market. Mr. Roosevelt is reported to have remarked that in the past foreign currencies and gold reserves had at times been seriously affected by concerted attacks made by private syndicates, instancing attacks on the currencies of France, Belgium and Holland in recent years, and even on the pound. The gentleman's agreement between the United States, Britain and France on conditional stabilisation, he said, would make a direct attack on ciurencies difficult, but the. element of danger to the stock market persisted.