STERLING RISES

Dominion, Volume 26, Issue 29, 28 October 1932, Page 11

STERLING RISES

Recovery in New York MARKET STEADIER Firming in British Stocks Official Wireless. Rugby, Oct. 26. The recovery in sterling which occurred in the latter part of yesterday was continued this morning. The dollar rate opened at 3.31} to £1 sterling, and rose to 3.32, and British Government stocks were firmer in sympathy, with war loan at £lOO. There were again sharp .fluctuations in the exchange rate during the day, although the tone of the market was reported steadier. NO CAUSE FOR ALARM Reaching Natural Level EX-CHANCELLOR’S VIEW . London, Oct. 26. “People are unnecessarily perturbed about the fall of sterling, which, without the support of the exchange equalisation fund, is reaching its natural level in relation to the amount of trade with the outside world,” said Sir Robert Horne, a former Chancellor of the Exchequer, in a speech in London. “The difficulties are small in comparison with the advantage of having sterling at its natural level except in

one respect, in which there is a possibility of great difficulty, namely, the level of currency obtaining throughout the Empire. Unless there is a definite arrangement between the communities of the Empire it is obvious that any system of preference can be broken up by changing currency values. Consequently, one of the first essentials is to fix a ratio of currencies, which is not difficult.”