FALL OF STERLING

Nelson Evening Mail, Volume LXIV, 7 August 1931, Page 5

FALL OF STERLING

FINANCIAL PAPERS PUZZLED (United Press Association—By Electric Telegraph—Copyright). LONDON, 6th August. Financial papers admit that London and Continental markets are puzzled by the fall of sterling. It is generally accepted that the explanation is that in view of the new fifty million credit the Bank of France withdrew its independent support, which recently held tho franc around 123.90 before arrangements wero fully made here to assume control of exchanges. LONDON, 6th August.

“The Times’’ in an editorial says that no importance need be attached to tho erratic movements, which are more spectacular than significant of weakness due to technical Changes in the market for sterling, in which there was a distinct recover” before the close. The Bank of England according to the rules of the game should have lost gold, but the fact that the Bank, despite the lowness of exchanges, received nearly £1,200,000, some of which was from Paris, shows that tho central banks are anxious to discourage the taking of gold from London. LONDON BANK RATE LONDON, 6th August. The Bank rate is unchanged. MELBOURNE MARKETS (Received 7th August, 9.25 a m ) MELBOURNE, This Day. Wheat, 2s 3d. 2s 4d; flour £6 15s, bran £3 15s; pollard £4 ss; oats 2s, 2s 3d; barley unchanged; maize 3s 6d. GERMAN BANKS (Received 7th August, 9.45 a.in.) BERLIN, Gib August. Although the Roichsbank had one thousand million new notes in readiness for demands from private banks yesterday. none were required. On tho contrary payments exceeded withdrawals -by twenty-four million marks VICTORIAN BANKS I MELBOURNE, oth August. The Premier, Mr Hogan, announces that, the associated banks in Victoria have agreed to reduce interest by 1 per cent, on private advances before October Ist.