U.S. CRISIS

Hawke's Bay Tribune, Volume XXIII, Issue 73, 8 March 1933, Page 7

U.S. CRISIS

ISSUANCE OF SCRIP CONDITIONAL AUTHORITY. GRANTED TO CLEARING HOUSES. By Telegraph—Press Assn.—Copyright. Washington. March 7. Conditional authority for the issuance of scrip on Friday or other mediums of exchange by clearing-house associations was granted to-day by Mr. Woodin. LIVE STOCK EXCHANGE. TO CONTINUE AS USUAL. (Received 10.35 a.m.) Chicago, March 7. The live stock exchange to-day recinded Monday’s order announcing that the exchange would close for business. It will continue as usual. CANADIAN TRANSACTIONS. “OVER THE COUNTER” BASIS. (Received 8, 10.35 a.m.) Toronto, March 7. Nearly all Canadian banks were doing business to-day in United States currency on an over-the-counter basis. The usual premium rate on the American dollar is 15 per cent, for buying and 18 per cent, for selling. AU banks in Toronto quoted the rate on London as from 4.19 to 4.23 dollars. EFFECT ON PRICES. AUSTRALIAN SPECULATIONS. (Received 8, 11.15 a.m.) Sydney, March 7. In regard to the financial outlook consequent on the American crisis, banks and financial institutions here are adopting a “wait and see” attitude. Stockbrokers are frankly puzzled about the outcome. The opinion is expressed that if the United States abandons the gold standard permanently, Australian exporters will no longer enjoy their present exchange premium, and the authorities may consider it wise to raise the rate. However, much of the discussion of this aspect is purely speculative. Bankers emphasise that nothing can emerge until the effect of the American action on world prices is apparent.