MONEY PROBLEM

Evening Post, Volume CXV, Issue 105, 6 May 1933, Page 13

MONEY PROBLEM

EXCHANGE STABILITY

FURTHER PRECAUTION

EQUALISATION FUND PLAN

TREMENDOUS INCREASE

United Press Association—By Electric Tele j erapU—Copyright. LONDON, May 8. The statement of the Prime Minister (Mr. J. Ramsay Mac Donald), in) the House of Commons regarding his mission to Washington, and the statement of the Chancellor of the Exchequer (Mr. Neville Chamberlain) in moving that the Exchange Equalisation Fund Account' be increased from £150,000,000 to £350,000,000— a proposal which the House agreed to without division—naturally have given an unusually serious tone to the morning newspapers. Both statements open a wide field of discussion. The whole city is behind the Chancellor in increasing the Exchange Equalisation Fund. The impressive magnitude of tho figure will itself act as a very formidable deterrent to speculators. Tho authorities are now in' a very powerful position both to checkmate speculators and even to stamp out any big fluctuations resulting from a sudden wave ot movements of capital. Mr. Chamberlain mentioned that the amount of short-term capital in this country at the beginning of , 1933 had reached tho amazing total of -2000 millions sterling. How much "refugee, or bad," money may bo here in the next twelve months was uncertain, but it was agreed on all hands that the Chancellor is wise in providing an ad-' ditional £200,000,000 to deal with, any emergency. Mr. Mac Donald's statement is regarded as showing, that his mission was: productive of good results: an improvement in the relations between the two; countries and a better understanding, between the two Governments.; !