FALL IN STERLING

Evening Post, Volume CXIV, Issue 101, 26 October 1932, Page 9

FALL IN STERLING

PROCESS CONTINUING

VARIOUS CAUSES ASCRIBED

HINT TO SPECULATORS

United Press Association—By Electric Telegraph—Copyright. (Received 26th October, 10 a.m.) LONDON, 25th October. The further sensational fall in sterling is ascribed by the "Evening Standard" to the recall of French funds for'impending 'State-loans, also to bear attacks in Paris and Amsterdam, based on unfounded rumours that the British Exchange Equalisation Fund is exhausted, and that Britain is short of dollars for December repayments. The "Standard" hints that the Treasury and the. bank will shortly intervene with disastrous results to speculators. ,OHNIO2T IN AMERICA BRITISH FISCAL POLICY NEW YORK, 24th October." Sterling closed at 3.31J dollars, a net loss of 7 5-8 cents. It touched 3.31 3.8 dollars. Bankers regard the fall as a manifestation of British fiscal policy rather than an indication-that the Bank of England has exhausted its means of supporting exchange. NEW LOW LEVEL STERLING IN NEW YORK RECORD FOR 1932 (Received 26th October, 11 a.m.) NEW YORK, 25th October. A new low level for 1932 was touch8a by sterling on the foreign exchanges market on Tuesday, the pound closing 1J cents lower at 3 dollars 30i cents for cables, rallying from the opening of 3 dollars 29J cents. It was believed that official support had been withdrawn again since sterling's decline last Tuesday, when currency was stabilised; close to the 3 dollars 40 cents level. Bankers here said British support would come again when sterling reached a level that could be supported with greater ease, but no indication of that level was forthcoming. The Canadian dollar closed one cent Wer at 91 1-8 cents, after opening aY PRICE OF POUND SEASONAL INFLUENCES BRITISH STOCKS BETTER (British Official Wireless.) (Received 26th October, noon.) RUGBY, 25th October. After a further decline to 3.28 dollars sterling on New York recovered to-day to 3.30J dollars. The low price of the pound is attributed in City circles here to influences of a seasonal character, which are naturally more marked since the departure from the' gold standard, accelerated by seUins hv \ foreign speculators, whose operations are considered to be attended by a considerable measure of risk to themselves. . On the London Stock' Exchange today a feature at the close was the sharp recovery in the leading British Government stocks, especially War Loan assented at 102. SPECIAL- ACCOUNT EXCHANGE EQUALISATION CHANCELLOR'S VIEW (British Official Wireless.) - (Received 26th October, noon.) , RUGBY, 25th October. Answering in the House of Commons a question as to whether speculative, attacks on sterling had been checked by the exchange equalisation account, the Chancellor of the Exchequer, Mr! Seville Chamberlain, replied that he was unable to say to what extent speculation in exchange existed, but he had no doubt that reserves of foreign currency in this account acted as a deterrent against the activity of speculators. The purpose of the account was to prevent excessive fluctuation in the value of currency and it was never intended to keep exchange at a fixed price or keep it within a iixed ranee of values in opposition to seasonal or other tendencies.' ■ '-.■'■