FALL OF STERLING

New Zealand Herald, Volume LXIX, Issue 21325, 28 October 1932, Page 11

FALL OF STERLING

UNNECESSARY CONCERN REACHING NATURAL LEVEL LONDON. Oct, 2(5 "People arc unnecessarily perturbed about the fall of sterling, which, without the support of thp. Exchange Equalisation Fund, is reaching its natural level in relation to the amount of trade with the outside world," said Sir Robert Home, a former Chancellor, of the Exchequer. "The difficulties arc small in comparison 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 of currency which obtains throughout the Empire. "Unless there is a definite arrangement between the communities of the Empire, it is obvious that any system of preference can bo broken up by changing currency values. Consequently, one of the first essentials is to fix. the ratio of cuirenciefc, which is not difficult. There were again sharp fluctuations in the exchange rate to-day, although the tone of the market was reported to be steadier. The recovery of sterling which occurred in Hie latter part of yestcidav continued this morning. The dollar rate opened at 3.31£ to 3.32, but receded to 3.29 i. British Government stocks were firmer in sympathy. War Loan was quoted at £IOO