EXCHANGE RATE

Evening Post, Issue 122, 26 May 1933, Page 9

EXCHANGE RATE

NO FALL PROPOSED

MR. COATES EMPHATIC

A denial of rumours that a fall in the rate of exchange on London was in prospect was mado by tho Minister of Finance (the Kt. Hon. J. G. Coates) in a statement issued, last evening. Mr. Coates said the rumours were entirely without foundation, and it was neccs-' sary to warn the public that in some instances at least such .rumours were circulated for interested, purposes. Mr. Coates said it was nothing but the most urgent necessity that had forced the Government to raise the exchange rate. "The, reasons for this action," he added, "were, fully explained at the time, and I think that despite the hardship caused to sonic sections of the community the wisdom of the course that was then adopted is being increasingly recognised. ' "The conditions that necessitated the raising of exchange have not improved since that action 'was taken; indeed, world prices havo since shown a further | decline. In the last few weeks there have been some definite signs of recovery, and though in these times no one can see- what the' future holds in store for us, an improvement can, I think, confidently be expected. So far as the situation can be gauged, howeveV, it is in the highest degree unlikely that any. recovery in prices sufficient to_ warrant a reduction in'the exchange rate will come suddenly, and so far v a3 I can'see the present rate will'have to bo maintained for a considerable period.1 . "The important thing now is stability in order that business generally may not be hampered by uncertainty. I therefore ask all interests to take the existing situation, as they find it, and to assist both themselves and' the country by ignoring all rumours and pushing on with their business. The stability of the country and.co-operation in the real sense of the word will not be assisted by idjc or mischievous rumours, concerning the rate of exchange.'''