FUTURE OF WOOL

Northern Advocate, 3 May 1933, Page 4

FUTURE OF WOOL

POSITION UXCEPTATX. APPECT OP STERLING. In their latest review of the wool market, Messrs 11. Dawson. Sons, ami Company, Ltd., of Bradford and London, states as follows; — "The uncertain factor is the future of sterling-. Bank of England continues to buy gold, and has now exceed-ed-50,000,000 of accumulations during the past few weeks, which stock approaches the highest level known during tho last decade. This is giving an underlying strength to sterling. Al-

though an advance in the quoted rates 1 has not yet materialised, the above facts provide good grounds for expecting a substantial appreciation. Theoretically, a 10 per cent, advance in sterl-. ing should be compensated by a 10 per cent, decline in the prices of imported raw- materials. This is the uncertainty that is restricting operations on a sterling basis. It is w T ell known that the British Government is artificially restricting the free movement of the exchange rate, and it becomes a question as to what extent further accumulations of gold of foreign currencies are contemplated.” I