EXCHANGE EQUALISATION

Evening Star, Issue 22688, 30 June 1937, Page 11

EXCHANGE EQUALISATION

INCREASE IN BRITISH FUND LABOUR AMENDMENT REJECTED Press Association —By Telegraph—Copyright LONDON, June 28. In the House of Commons, during the debate on a resolution to increase the amount that may be issued to the Exchange Equalisation Account from £350,000,000 to £550,000,000, Mr F. W. Pethick-Lawrence said that the Labour Party supported the new proposal so far as it was designed to assist France. The Labour Party accepted the principle of the Exchange Equalisation Account because it partly restored the control of currency and finance to the Government, whereas the Bank of England hod long controlled the life blood of the community, but the Labour Party thought that the increase of £200,000,000 was unnecessarily’ high. A Labour amendment to restrict the increase to £150,000,000 was rejected by 197 votes to 96. The resolution was agreed to without a division. INVESTORS REASSURED NO REDUCTION IN GOLD PRICE. LONDON, June 29. (Received June 30, at 11 a.m.) The financial Press considers that Sir John Simon’s statement in the equalisation fund debate means that investors can dismiss gold, price reduction from their calculations. It is becoming clear that private buyers will take some time to recover confidence, although the falls were overdone. The ‘ Bankers’ Magazine ’ calculates the aggregate fall in a list of 305 securities at £120,000,000. The index is the lowest since November, 1935.