Dollar Holds Its Own

Manawatu Times, Volume LVI, Issue 7106, 15 March 1933, Page 7

Dollar Holds Its Own

Huge Losses by Speculators

UNPLEASANT SURPRISE ON ’CHANGE

United Press Association —By Electric Telegraph—Copyright Received Tuesday, 8.5 p.m. LONDON, Mar. 14. The Daily Express financial correspondent say 3 the resumption of dealings in dollars brought heavy losses to international currency speculators. Before the suspension of dealings on March 4 many sold short on a big scale, being convinced that the dollar’s value would drop. They were unpleasantly surprised when dealings began on Monday at 3.44 with such a heavy demand that they closed at 3.99. The banks operating on behalf of the Exchange Equalisation Fund had no need to deal extensively after they gave the lead at the opening as the bears did everything necessary to keep the pound down. Some authorities estimate that short dollar sales total £60,000,000. In Paris the losses by speculators are estimated at £2,000,000. Banking Evils in U.S.A. RECURRENCE NOT WANTED WASHINGTON, Mar. 13. President Roosevelt has asked the Justice Department to keep a close watch on future disclosures in the Senate Committee’s stock market investigations, and to prosecute vigorously any violations of the law which may be brought to light. A continuation of the inquiry begun during the Republican regime was ordered on Monday by the Senate Banking Committee, now controlled by Democrats. It was decided, however, to scrutinise private investment practices and public utility security issues in the immediate future, and postpone the further study of commercial banking practices. White House attaches explained that the purpose of the investigation would be to prevent a- return of the evils already found to exist, and to seek the extent of the ramifications of those evils. The President had said that banking evils were largely responsible for the present banking emergency. Getting Back to Normal NEW YORK!, Mar. 13. Overhauled by the Federal Government the banking machinery of the United tetates began functioning without restrictions again on Monday in the country’s financial strongholds. Three hundred and forty-six institutions in .12 Federal Reserve cities carried on normal business during the first day of the President’s three-day programme. Many private banks also started operating, and a few others opened under restrictions. Deposits are reported as exceeding withdrawals in many cases, and in no instance was there any difficulty in meeting all the demands. Tho New York Stock Exchange is expected to TOBumo trading within a few days.