CURRENCY STRUGGLE

Grey River Argus, 16 May 1935, Page 5

CURRENCY STRUGGLE

AMONG THE NATIONS Gold Bloc Instability (Aus. and N.Z. Cable Assn.) LONDON, May 14. Increasing fears of devaluation by the remaining European gold bloe currencies caused another rush to bugsterling. The flight of capital to London led to weakness of French and Swiss francs, and Dutch guilder. Rumours of increasing enthusiasm for devaluation among French business interests precipitated heavy sales of French francs. Gold is 142 s SJd per ounce and exchange rates on £1 are: Dollar 4S/L franc ”4 1-16. NEW YORK. May 14. Both invitation and challenge to Great Britain were seen by some monetarv authorities in Mr Morgen-tl-au’s remarks on dollar stabilisation. The British pound is now a great unknown quantity in world finance. It is pointed ont that the Secretary made it clear the United States was willing to stabilise, but must remain prepared to devalue further, while a threat of similar action by “other great trading nations” remains. Should the world I - ice of silver be boosted to around 10S cents an ounce, foreign exchange authorities explained, it would become profitable to melt the huge Indian rupee coinage and sell bullion rather than pass the loans at face value. Sueh a monetary crisis in India., it Is believed. could scarcely fail to have unpleasant repercussions upon London.