STERLING RECOVERY

Northern Advocate, 27 October 1932, Page 5

STERLING RECOVERY

FINDING NATURAL LEVEL

EFFECT ON PREFERENCES,

CURRENCIES RATIO IMPORTANT.

(British Official Wireless.) (Received Noon.) RUGBY, October 2G,

The recovery of sterling', which occurred in the latter part of yesterday, continued this morning - . The dollar rate opened at ff..‘1.1l to 3.32, and British Government .stocks, were firmer in sympathy, with War Loan at £IOO. “People are unnecessarily perturbed about the fall of sterling, which, without the support of the Exchange Equalisation Fund, is reaching its natural level in relation to the amount of trade with the world outside,” said Sir Robert Horne, M.P. for Glasgow (a former Chancellor of the Exchequer).

“The difficulties arc sinall in'-com-parison with the advantage of having sterling at its natural level, except in one respect) and that is the possibility of a great difficulty, namely, the level that currency is obtaining throughout the "Empire. “Unless there is a dolinite arrangement between the communities of the Empire, it is obvious that any system of preference can be broken up by changing currency values. Consequently, one of the first essentials is to fix the ratio of currencies, which is not difficult.”