BRITISH FINANCE

Hawke's Bay Tribune, Volume XXI, Issue 303, 7 December 1931, Page 7

BRITISH FINANCE

“TURNING THE CORNER” STERLING WEAKNESS NO CAUSE FOB ANXIETY. REDUCTION IN AUSTRALIAN 'CHANGE. (United Press Association—By CableCopyright.) (Received 7, 11.15 a.m.) London, Dec. 6. The reduction in the Australian exchange, although it is welcomed as a move in the right direction, has not altogether satisfied Anglo-Australian commercial men, who maintain that it might advantageously be greater. They are of opinion that the uncertainty due to periodic fixations sponsored by the Commonwealth Bank will react more adversely to trade than tho declaration if a definitely unvarying rate over a longer period, say of six months. They point to the fluctuations of sterling and declare that, the operations of two unpredictable factors instead of one will aggravate the difficulties of bill brokers. Meanwhile the weakness of sterling has not occasioned as much anxiety as was expected. Financiers arc of the opinion that the factors concerned can, if necessary, be corrected by a bold use of the bank rate on traditional lines. A repeal of the Treasury’s ban on forward exchange dealings is expected

soon. Stock exchange opinion, despite disqueting world conditions, is that Britain’s financial position is turning the corner.