CURRENCY AND TRADE

Evening Star, Issue 20995, 8 January 1932, Page 9

CURRENCY AND TRADE

■ BRITISH GOVERNMENT'S POLICY STATEMENT BY FOREIGN SECRETARY (Brittoh Official Wir»l#M.) Press Association—By Telegraph—Copyright. RUGBY, January 6. Speaking to representatives of the foreign Press in London, Sir John Simon (Foreign Secretary) said that the very stringent action which the Government had had to take lately to maintain currency and correct the balance of trade was an emergency action to meet an emergency situation. It had not the smallest desire to inflict any injury or inconvenience which could be avoided. It would be a great mistake to suppose that these very firm, and in some respects very severe, measures were in themselves part and parcel of a deliberate fiscal policy. The fiscal policy to be adopted was a matter for future consideration and decision. ATTACK ON STERLING FRANCE’S ATTITUDE. (British Official Wireless.) RUGBY, January 6. The statement that the French banks are launching an attack on the pound sterling by withdrawing their balances was denied in authoritative circles in the city. Ever since Britain went off the gold standard the attitude of the French bank authorities towards sterling has been friendly and helpful, and there is no indication of any likelihood of a change. EFFECT OF BALANCED BUDGET LONDON, January 7. The ‘ Financial News ’ expresses the opinion that the likelihood of a balanced Budget here, while both France and the United States will have considerable deficits, will in due course lead the people both here and abroad to revise their opinions of the intrinsic value of the respective currencies.