MONEY MARKET

Gisborne Times, Volume LXXIII, Issue 11549, 28 January 1932, Page 5

MONEY MARKET

STERLING IMPROVES

GILT-EDGEDS FIRMER

INDIA MAY HAVE HELPED

(Uriti'sh Official Wireless) RUGBY, Jan. 26

An appreciable improvement in sterling this morning followed the announcement that the Bank of England will complete next week the repayment of outstanding credits to the New York Federal Reserve Rank and the Bank of France. The New York cable rate closed from the overnight figure of 64 1 cents to 616;] cents.

The Times’ City editor describes the statement as extremely g’atify ing, adding: “Tho fact that the credits are not- being kept open is a demonstration of the strength of the bank’s position, for had the bank felt that it was desirable, as a matter of preen lit ion, to keep tho liabilities open in yase of need there would have been no difficulty in arranging for their renewal. The large sales of gold by India, may have indirectly proved a helpful factor. No one foresaw that the suspension of gold payments -‘would lead hoarders of gold, who in the last 30 years have absorbed about- £366,000,000, to begin to dispose of it. Already about £30,000,000 has been shipped from India since September 21, and the melting continues. In this wav India is not only making a profit for herself, but is also making a useful contribution to world economy.’’ The Manchester Guardian says the fact that repayment is being effected without a reduction of the bank’s gold reserve is an agreeable surprise. The arrangements the banks has made to repay in gold will avoid an exchange loss of about £200.000 if dollars and francs had been purchased at recent rates of exchange. Tho Bank of England's payments led to a brighter tone on the Stock Exchange. Gilt-edgeds firmed on the strength of sterling, and Australian and New Zealand stocks mostly ad vanced by £l.