NEW RELATIONS

Evening Post, Volume CXXII, Issue 79, 30 September 1936, Page 14

NEW RELATIONS

POUND, DOLLAR AND FRANC

Gold at 140s 7d per fine ounce removes, for the present at any rale, any 'cause for anxiety on the part of shareholders in producing gold mines that. the stabilisation of, exchange of the English pound sterling, the American dollar, and the vFrench franc will adversely affect the price of the precious metal. Quotations yesterday for gold mine shares listed on the Australian Stock Exchanges reflected the change in generally advancing or firmer prices. For the month now expiring the price of fine gold as reported by cablegram has not been more than 138s 3d sterling per ounce, and it has registered as low as 137s 2Jd. In 1935 (March 6) it touched 149s 4d. The price of gold varies with the value of the pound sterling. The devaluation of the French franc is all towards stability. A basis of 100 francs to the £1 sterling with 4.86 dollars to the £1 sterling is expected- to be taken and it would be a first and great step towards a stabilisation of the principal currencies of the world. Assuming the French franc to be stabilised at 100 francs to £1 sterling, then, instead of £1 being worth say 76 to 76.50 as it has been, it would represent 100 francs in France, or 80.3 francs for £1 of New Zealand currency. In "ancient days" £1 sterling was worth roughly 25 francs. In 1926 it was worth 250 francs; but in recent times the parity of exchange was 124.21 francs per £ 1 sterling. Just prior to the United States leaving the gold standard the relation of the franc to the £1 sterling was 87.44. Then it rose (or the £1 sterling fell) to 74:69 at the end of November last, and it rose again to 77 on Wednesday last, being quoted at 76 27-32 next day. Friday and Saturday and Monday last there were no quotations.