CURRENCY INFLATION

Evening Star, Issue 21569, 15 November 1933, Page 9

CURRENCY INFLATION

POSITION IN AMERICA CONGRESS WAITING DEVELOPMENTS \ Pret* Association—By Telegraph—Copyright NEW YORK, November 13. A United Press Association’s despatch declares that a private poll of Congress reveals an overwhelming inflation sentiment. Unless the Administration policies' produce marked results by January legislators are likely to take the matter into their own hands and either devaluate the gold content of the dollar or issue fiat money. AUSTRALIAN DOLLAR BONDS QUESTION OF CONVERSION. , NEW YORK, November 13. The ‘ Evening Post’s ’ financial editor declares: “ Britain has a strong weapon to check the rise in sterling by offering to convert Australian dollar bonds, of which some 200,000,000d0l are outstanding, into sterling obligations. With the pound above sdol, sterling bonds of 3J to 4 per cent, interest would be attractive for holders of Australian dollar issues, although the interest on them is somewhat higher. British investors, owing to the high regard in which they hold Australian credit, would buy the dollar obligations outstanding here" for conversion into sterling bonds, thus creating a demand for dollar exchange, which would check the decline of the dollar and the rise in , sterling.”