AUSTRALIA NOT RISING VALUE OF HER POUND

Grey River Argus, 4 September 1948, Page 5

AUSTRALIA NOT RISING VALUE OF HER POUND

For Some Time Yet . (Rec. 10.40) CANBERRA, Sept. 3 The most authoritative view as to the value of the Australian pound is that it will not be changed for some time. Reasons for this are tnat such a move would be* disadvantageous to the national interest. A change in the value of the Australian pound would only follow the depreciation of the sterling. There are three factors wnich would bring about the depreciation of sterling. These are:- 1 —(1) A serious further devaluation of currencies in Europe. (2L British insanity to continue to sell the full production of British manufactures on overseas markets at approximately the present rates. (3) Unemployment in Britain, resulting from over production. None of these lactors has appeared to be likely, although, in the present rapid movement- of world events, any of them could arise without much warning. Australian experts believe that the most likely eventuality would be that of a serious devaluation of the European currencies. It was explained, officially, that the Bretton Woods Agreement would not prevent Australia from appreciating her currency if she so desired. The Prime Minister, the Hon. J. B. Chifley, has reiterated that there is the closest liaison between the United Kingdom and the Australian Governments. A fortnight ago, Mr Chifley told the confeernce of State Premiers that Sir Stafford Cripps had let it be known that he would violently resist any change in the United Kingdom currency. ; , ... It was stated that the Australian Government took the same stand as the United Kingdom Government, and would resist to the utmost any proposed alteration of the present rates of their currencies.