ONSLAUGHT ON DOLLAR.

New Zealand Herald, Volume LXIX, Issue 21144, 30 March 1932, Page 9

ONSLAUGHT ON DOLLAR.

MARKETS IN AMERICA. POUND STERLING SOARS. UNBALANCED BUDGET FACTOR. -Telenrnjili—Pre.-s Association—Copyright. (Received March 'J'.). 5.5 p.m.* NF.W YORK. March 2R. A somewhat tardy onslaught on ihe dollar .started on JS.itui'tlay ns a rcpe.Tussion to 1110 failure of Congress on Thursday to approve the sales tax as otjc of I ho means of balancing the Budget. It continued to-day in spite of an assurance that the United States will not suspend die gold standard. Although to-day was a bank holiday in England and elsewhere in Europe heavy liquidation from abroad f-ent foreign exchanges, led by the pound sterling, soaring. The final prices were substantially above Saturday's closing rates, but. they represented a slight decline on the day's high levels. Sterling closed at dollars after touching 3.83;, the highest rate since October 31. The franc closed at 3.94 dollars after touching 3.94 7-8, which is about i above the gold export level. In view of the holidays in Europe it is reported that bankers and dealers operated from their homes and dealings converged on New York, the only important market open. POSITION IN CONGRESS. the disruptive forces. TOO STRONG TO BE CURBED. (Received March 20, 8.15 p.m.) Times Cable. LONDON*. March 29. The Washington correspondent of the Times says the disruptive forces in the House of Representatives now are too strong to be curbed. The chance that Congress will balance the Budget by taxation and economy is as slender as ever. Failure to balance the Budget will exaggerate the nervousness about the domestic conditions and increase the distrust of every American for American banks and their managers, and start a flight from the dollar.