STABILITY OF STERLING

Evening Post, Issue 149, 20 December 1935, Page 10

STABILITY OF STERLING

BANK OF ENGLAND'S GOLD

Mr. L. G. Reid, financial editor of the London "Daily Telegraph," commenting on the action of the Bank of England in making important additions to its stock of bullion, said that as occasion arises further acquisitions may be made. The explanation accepted in the City was that this increase in the gold, held against the note issue was in iiiticipation of <a record seasonal expansion with the approach of Christmas. As England is "off" gold such precautions may appear unnecessary, for there is no statutory need to buy gold when the notes increase. It may also seem unnecessary because when the gold in the issue department is written up to its present market value on the stabilisation of the .pound the value of the bullion held against notes will be impressively higher. * "It is safe to assume," Mr. Reid added, "that our monetary authorities never give nervous owners of mobile balances any opportunities to- imagine that inflation is countenanced in this country. "The. pound sterling may not be on gold, but there can be no question of its soundness or stability. When money moves from one centre to another in large blocks almost without provocation all doubts should be avoided." .