Confidence In Sterling

Bay of Plenty Times, Volume LXXVIII, Issue 15135, 18 November 1949, Page 3

Confidence In Sterling

Sir Stafford Cripps On

Devaluation

Exports And Reserves

Increase

(Rec. 8.50 a.m.) London, Nov. 17. Sir Stafford Cripps told a news conference today in London that there was no economic or financial reason for any lack of confidence in sterling at the existing rate. The Chancellor said that at present there could not be any evidence to show that the devaluation was either enough, or not enough. There had been a big increase in exports' in October and exports to the United States and Canada showed 'increases in sterling values of about 35 and 20 per cent. It was too early to say whether this was merely the automatic result of devaluation.

The Chancellor reported an increase in reserves between September 18 and 30 of £20,000,000 at the old rate of exchange. Since then, they had continued to move upward. There was' no reason to believe that there would be any fall in the reserves for the period up till next June.

Sir Stafford said that stocks of food and raw materials in Great Britain had risen in the last six months by about £100,000,000. The food increases were mainly in wheat bacon, meat and ham. These reserves put Great Britain in a stronger position as a buyer. Qj the longer-term prospects, the Chancellor said there were encouraging signs of a steady improvement in production.