POSSIBILITY OF WAR

Evening Post, Issue 50, 27 August 1935, Page 9

POSSIBILITY OF WAR

EFFECT IN -THE CITY"

TENDENCY OF STERLING

(Received August 27, 9 a.m.)

LONDON, August 26. Discussmg the effects of the possibility of war on Britain's financial position, the "Daily Telegraph's" financial writer says that last week the Stock: Exchange recognised ttie existence of a very awkward situacion. Jobbers took, the precaution of reducing prices. Investors arid speculators, professional and private, kept their heads. The I paucity of selling surprised most experienced dealers.

"There seems to be no reason why this steady attitude should not be maintained," he says, "until the League's decision is known. If the world thought this country was steering to war the effect on the rate of the pound sterling would be seen very quickly, but the tendency of sterling recently has been to .appreciate, and this is more notable because it is contrary to the usual seasonal trend. There is evidence that both the leaders of the rank and file of the City and investing public are calmly surveying all eventualities in a.realistic frame of mind. The worst that the City looks for is a certain measure of hostilities in Abyssinia and a fresh period of grave • uncertainty in Europe, but it recognises that nothing which is likely to happen need change the fundamental basis of British progress."