CURRENCY ISSUE ALIVE.

Press, Volume LXIX, Issue 20905, 12 July 1933, Page 9

CURRENCY ISSUE ALIVE.

STABILISATION STILL HOPED FOR. FALL OF DOLLAR CAUSES OPTIMISM. (CSTTED rr.KSS 4S3OCIATIOK—B7 ELLCTKIC TELEGRAPH —COPYRIGHT.) (Received July 11, 9.20 p.m.) LONDON, July 11. The report of Mr Chamberlain's speech in the House of Commons attrr 1 much interest in the conference lobbies. It is suggested by some delegates of the gold countries that the dollar is dropping so steeply th -1 the United States may be ready to discuss stabilisation within a week. I When the British delegate submitted a draft resolution in favour of the continued discussion of certain 'questions to the monetary sub-com-mittee, many delegates were absent, notablv those of the gold countries. Proceedings had to be adjourned. A message from Paris says that the Cabinet has considered what action should be taken in the event of the prolongation of the conference, but no decision has been reached. A section of the Cabinet favoured continuing the discussion of commercial problems with the gold countries only. POUND'S RELATION TO FRANC. LITTLE CHANGE. SUCCESS OF BANK'S POLICY. (Received July 11, 9.15 p.m.) LONDON, July 11. The financial editor of the "Daily Herald" says that despite Great Britain's refusal to co-operate with the gold countries in stabilisation, the Bank of England is hanging grimly on to the franc. At the moment there is some transfer of international funds from the pound to the franc, but a much larger transfer out of dollars. Mr Montagu Norman (governor of the Dank of England) has been working too long and earnestly for an alliance between the pound and the gold standard currencies, as a prelude to the British return to the gold standard, to be prepared to let the pound get out of pace with the franc. It is a tribute to the Bank of England's ability and determination that throughout the changing fortunes of the Economic Conference it has kept the pound-franc exchange almost unchanged. DEFENDING GOLD CURRENCIES. SUCCESS CLAIMED FOR NEW EXCHANGE FUND. (Received July 11, 9.15 p.m.) PARIS, July 10. It is claimed that the gold bloc's campaign against speculation operated successfully to-day, the gold currencies being resilient regardless of the slump of the dollar. [The countries forming the gold bloc decided on Saturday to form a common fund which would be used to check bpeculative raids on any of the gold currencies, the operations of this fund to begin on Monday, June 10. It was said that this was a logical development from the declaration of June 3. which read: "The undersigned Governments, convinced that the maintenance of their currencies is essential for the economic and financial recovery of the world and of credit, anfor the safeguarding of social progress In their respective countries, confirm their intention to maintain the free functioning of the gold standard in thier respective countries at existing gold parities and within the framework of the existing monetary laws. They ask their central banks to keep in close touch, to give the maximum efficacy to this declaration." The declaration was signed bv the delegates of Italy, France, Belgium, the Netherlands. Poland, and Switzerland.!

REMOT)FJ,T.ING OF AGENDA. WEAK ATMOSPHERE AT CONFERENCE. LONDON. July 10. Talk of the conference going into recess at the end of next week preceded the bureau's inconclusive meeting, at which the time appears to have been occupied with a battle over what should and what should not be retained on the agenda paper. For example, France wanted to limit the suo-committee on permanent financial measures to the question of silver, but there was strong support for submitting a list of subjects to the bureau, and this was ultimately decided. France making the reservation tbat she would not participate in the discussion, There are sufficient subjects remitted to the five commissions to justify their appointments. The drafting committee will submit a remodelled agenda to to-morrow's bureau meeting. The present atmosphere of the conference is by no means suggestive of virility and purposefulness. BRITAIN AND DOMINIONS. CONSTANT CONSULTATIONS. LONDON, July 10. Replying in the House of Commons to a question whether, in view of the breakdown of the World Economic Conference, he had asked the Dominions to hold an emergency Empire Conference to safeguard their interests, Mr MacDonald said the conference was continuing. Great Britain was consulting constantly with the Dominions.