The Dominion THURSDAY, OCTOBER 27, 1932. DECLINE OF THE POUND STERLING

Dominion, Volume 26, Issue 28, 27 October 1932, Page 8

The Dominion THURSDAY, OCTOBER 27, 1932. DECLINE OF THE POUND STERLING

Many causes have been offered for even seen of the pound sterling. Some f °£ el S ; ish Gover nment to stimulate in the depreciation a design by the That is certa inly the export trade by the grant of a Government would one of the effects but i ,• j s to ensure reasonable stability STS a policy’ with obvious advantages for a "'° r X d probably the break factors, some legitimate, some: sp Tbefe can be n 0 doubt> possibly, political in the international sen elections is for instance, that the eminence < b reactions . Again, l™ bM " S“ iltlKS °‘ " S ° ld d,I> ’ the other factors nray - b - to disturb sterling exchange . „„ r u n i n mcal factor through nervous work and have been assisted by the psyche dogkal tetor holders selling sterling “”“’ e »d early winter are normally the numerous enough. The autum / without the governor of heavy import season for Grea exerting steady downward gold, these foreign payments are no doubt^exerting , y pressure on the value of the pound. In additionßr itain the unconverted War Loan of for o Debt t 0 the United have to resume payment in dollars of the War uent SlSt All the same it would not in favour of the pound. After al America and France have Fra T e he a s n e d fact? must before long have a rallying effect on sterling insofar as its decline is due to speculation or goM it is well to remember that sterling is now over 30 per and the New Zealand pound over 40 per cent. _ 1 » Zealand producer is receiving an exchange premium over his South African competitor, for instance, of over 40 ,per cent, less the State bonus granted the latter on exports. Those who advocate a highi exchange should not forget that they are already receiving this 40 per cent premium on gold prices and should, ask themselves to wia figure they would limit the further depreciation of the New Zealand pound. '