STERLING RISING

Hokitika Guardian, 29 February 1932, Page 5

STERLING RISING

BRITAIN’S COOD RECOVERY. RESTORATION OF CONFIDENCE. (United Press Association—By Electric Telegraph.—Copyright.) LONDON, February 27. Ihe Australian Press representative says ithat file popularity of .British securities means that the full measure ■of the country's recovery from her difficulties in The autumn is now patent to the- world. It is difficult to realise 'that out five months ago the country wa.s faced with the gravest economic crisis in her history.

Her foreign balances were .‘then flowing out in ever-increasing volume, the Government stocks were falling, sterling was declining in value, in terms ol other currencies. To-day British iunds -are .ascendant, sterling is rising, foreign ffinds are returning, and Britain by an incomparable effort has effected a -reversal oi the world’s attitude. Foreign money is flowing back not only into the British Government loans, but into sterling and bills.

Mr Citrine, general secretary of the Trades Union Congress, addressing a conference of women workers in London, said he believed the worst phase of the depression was over. From now there would be >a slight move upward, und singularly enough, it will come with a rise in prices that will probably occur about next winter. Other authorities predict, a recovery Gin her,

TO DODGE THE, TARIFF. SHIPS SPEEDING FOR PORTS. LONDON, February 27. Praying for “no fog" the masters of scores of steamers are speeding to Britain intent on delivering their Continental and American cargoes by five a.m. on Monday, thug escaping the new duties. Most of the cargoes are foodstuffs, perishables, glassware and toys. Seventy arrived in file Thames overnight.

DEAL IN GOLD COIN. LONDON, February 27. •A man visited a gold dealer at Norwich with three leather bags containing fifteen thousand sterling in sovereigns and half-sovereigns, for which be received over twenty thousand sterling. BRITISH FINANCE. A BUOYANT ATMOSPHERE. LONDON, February 28. The city has experienced a wave of confidence. Gilt edgeds wore surprisingly buoyant and the Stock-Exchange was excited when the war loan reached par and continued to fisc, Citvites consider if gilt edgeds continue firm, S’r A, Chamberlain will In* given, an opportunity of converting the live per cent-. w,av loan to four per cent. Keynes and other economists expect an early depreciation of the commodity value of gold, and sav- if the domestic purchasing power of the pound remains stable sterling will approach par (fn six months. Keynes expects the undermining of France’s creditor position before 1933. The Caillaux fears disaster if the influx of gold to France continues. The city therefore expects a further reduction in the bank rate and removal of exchange -restrictions, consolidating confidence in sterling, enabling a forward exchange market and restoring London's lost financial business. N.Z EXCHANGE.

The ‘■Economist” commenting on suggestions of raising New Zealand exchange .to the 'Australian ’pvel, declares it would weaken credit and encourage a false economic atmosphere. New Zealand should allow exchange to find a natural level.