FALL OF STERLING

Manawatu Standard, Volume LV, Issue 81, 4 March 1935, Page 7

FALL OF STERLING

ANXIETY IN PARIS. FEARS FOR FUTURE. UNSTABLE FINANCES. (United Press Association —By Electric Telegraph.—Copyright.) Received March 4, 9.16 a.m. LONDON, March 3. The Sunday News’s Paris correspondent says the rone wed fall of sterling is. causing extreme anxiety in Paris. Neither M. Flandin’s nor any succeeding Government would dream of abandoning the gold standard voluntarily; nevertheless every time sterling falls France’s economic and financial position is shaken. The opinion is expressed that if the pound slides much longer it will bring about the economic ruin of Europe. French trado would bo seriously affected by a reduction in the price of British goods, the paper states. THE GOLD ADVANCE. SHARE MARKET REACTION. LONDON, March 2. The meteoric advance in the price of gold caused the mining share market to become the chief centre of activity on the Stock Exchange. Each rise in the price of the metal brought renewed activity, especially in South Africa. The political situation, rumours re garding which were the fundamental reasons for the recent weakness of the markets, appears, for the time being, to be regarded in a more, reassuring light. RECORD GOLD PRICE. £7 6s 10Jd~PER OUNCE. (British Official Wireless.) Received March 4, 11.37 a.m. RUGBY, March 2. A new high record price for gold was reached at to-day’s fixing, when gold to the value of £362,000 was disposed of at £7 6s lOjd, representing an increase of Is per fine ounce. POSITION IN AMERICA. A MAJOR ADJUSTMENT. NEW YORK, March 2. The downward tendency of sterling and the currencies joined to it continued to-day in what experts interpreted as a major monetary adjustment. Sterling, quoted at 4.77 5-8 dollars, was off 4J cents, and the lowest since November 1, 1933. Apparently' the market is getting no support from either the British or American stabilisation funds. This inactivity gave rise to the opinion that the authorities are willing for the present at least to allow economic forces to determine the new relationship between the nound and the dollar possibly as a prelude to stabilisation.