EXCHANGE RATE

Hokitika Guardian, 13 July 1935, Page 6

EXCHANGE RATE

STERLING GROUP STABILITY LONDON, July 8. The stability of exchange within the sterling group of countries and the instability outside the group, even between 1 countries on a gold standard, were referred to by the chairman, Mr R, 0. Hambro, at the annual meeting in London of Hambros Bank, which is closely associated with Scandinavian countries.

Mr Hambro said that when Great Britain left the. gold standard on September 21, 1931, Denmark, Norway, Sweden, and Finland at once decided to follow and a firm link was created between the 'Scandinavian currencies and sterling. Other countries followed their example, tout, outride the Empire itself, Scandinavia formed the core of the group. The rate of exchange for the different Scandinavian currencies against sterling had hardly varied and the sterling group as a whole had made a quick recovery. This had been of great advantage to the trade within these countries, and to-day the trading position with the Scandinavian countries was probably sounder than for many years' previously. The countries, as a whole, lay outside the danger zones of E»rono, their institutions and nolitical instincts closely resembled those of Britain and, in the main, their trade balance was satsfactory.

“It is vitually imprtant that the rest of the woi'Ul should be brought into some form of currency stabilisation, such as has worked for the past three years in sterling, so as to restore confidence and eliminate entirely speculation and panic flights of capital,” said Mr Hambro. “Only thus will the full flow of international trade be resumed, which, important a s it is to the rest of the world, is of even greater importance to Britain.” senary*'.