EXCHANGE EQUALISATION

Evening Star, Issue 22685, 26 June 1937, Page 15

EXCHANGE EQUALISATION

THE BRITISH FUND CHANCELLOR'S REQUEST TO COMMONS Press Association —By Telegraph—Copyright LONDON, June 25. (Received June 26, at 8 a.m.) Sir John Simon has asked the House of Commons for authority to increase the Exchange Equalisation Fund by £200,000,000, deferring a full explanation until the debate. He added that, in addition to the recent dishoarding of gold, there had been much financial disturbance abroad and the tendency of capital funds to move to London. _ “ While I consider that there is no reason why the present unsettled conditions should be permanent, the situation compels us to make further provision as insurance against a further movement into sterling,” he said. “ This is essential in order to maintain our general financial policy and to support our undertakings and objectives under the tripartite agreement, which is so widely approved.”

NO CHANGE IN POLICY SHARP RISE IN GOLD SHARES. LONDON, June 23. (Received June 20, at H a.m.) Questioned why only recently he said the exchange fund was sufficient, Sir John Simon replied that there was no sudden change in policy, but circumstances might develop. Mr Maxton a*ked why the urgency and what had happened since yesterday to cause an alteration in the House’s business. Sir John Simon said doubtless Mr Chamberlain would make a statement about tho order of business. “ I am conscious of the great responsibility, and am confident that the action 1 am proposing should be taken,” he said. Mr Chamberlain then announced the necessary Bill which would bo taken through all stages next week, beginning June 28 and concluding on July 2. The market interpreted Sir John Simon’s announcement to mean that the gold price will continue around £7, as the result of which there was a sharp rise in gold shares.