REMARKABLE STEP

Northern Advocate, 10 July 1935, Page 7

REMARKABLE STEP

by central banks. . COMBATING SPECULATORS. TREASURY NOT CONSULTED. [United Press Association~-By Electric Telegraph. — Copyright .] , (Received 9 a.m.) BASLE, July 8. Strong comment is made upon the policy of the central banks to fight against currency speculators, as decided upon at a meeting of the Bank of International Settlements at which it was agreed that common measure of defence be adopted on the first sign of attacks against currency in any country connected with the International. Bank. Describing the decision as “amazing and extraordinary," the “Daily Herald” says it virtually aims at achieving currency stabilisation without Government agreement. The Governor of the Bank of England, Mr Montagu Norman, is pledged to use the pub-licly-owned £375,000,000 Exchange Equalisation Fund for the support of almost any international currency showing weakness. “It seems inconceivable," says the paper, “that the Bank of England has entered into an agreement without consultation with the Treasury. Even more remarkable is the fact that the House ~p| Commons - has. not been informed 'Of the agreement, which may easily in practice mean an alliance between the pound and the gold bloc currencies to the exclusion of the dollar and virtual, stabilisation round the present exchange level. f * ——- . . .