CURRENCY PROBLEMS

Hawera Star, Volume LIV, 2 March 1935, Page 5

CURRENCY PROBLEMS

POUND, FRANC AND DOLLAR A JARRING TRIANGLE (United Press Association-By Electric Telegraph Copyright). LONDON, March 1. “The jarring triangle of the pound, the franc and the dollar is becoming an acute problem,” says the Daily Telegraph’s financial editor. “If the fall of the pound in terms of gold is not arrested big questions will soon arise. The city is actively debating whether the controls at London, Washington and Paris are content to leave the exchanges to find their own levels.

“Sterling is weak against the dollar, because Amerj(ca.’s currency is under-valued and there is no free supply to meet commercial demand. The present strength of the franc reflects the damage done to sterling by the recent unjustified scare on the Continent about Britain’s political and financial position. “A further disadvantage of the pound’s position is that it is forced to carry on its shoulders the present large important sterling area responsibility which is at present a big handicap. “Unsettled feeling on the Continent finds expression in a demand for gold and hoarders are busy. When they cannot buy gold they buy gold currencies.”