CENTRAL BANKS

Hokitika Guardian, 10 July 1935, Page 5

CENTRAL BANKS

TO FIGHT SPECULATORS. (United Press Association—By Electric Telegraph—Copyright). LONDON, July S. That the Central Banks, in future, will fight currency speculators, is the decision of a meeting of the Bank of International Settlements, at which it was agreed on common measures of defence which would he adopted at the first sign of attacks against currency of any country connected with the International Bank. , Describing the Basle decision gs amazing and extraordinary the “Daily Herald” says: It virtually aims at achieving currency stabilisation, without any Government agreement. Mr Montagu Norman has pledged the use of the British publicly-owned 370 millions sterling Exchange Equalisnton Fund, for the support of almost anv international currency, showing weakness. \ It seems inconceivable that the Bank of England entered into an agreement without consulting the Treasury: and even more remarkable, that the House of Commons was not informed as, the agreement may easily in practice mean an alliance between the pound and the gold bloc currencies, to the exclusion of the dollar, and the virtual stabilisation of the pound at the present exchange levels.