EXCHANGE SITUATION

Otago Daily Times, Issue 21537, 8 January 1932, Page 7

EXCHANGE SITUATION

CO-OPERATION OF COUNTRIES CONFERENCE AT COPENHAGEN (United Press Association.) (By Electric Telegraph—-Copyright) OSLO, January 0. A conference is being held at Copenhagen to-day between Norwegian, Swedish, and Danish Ministers, It is believed to constitute a preliminary to negotiations with England in regard to the exchange situation. An endeavour may be made to revive the war-time commercial and financial co-operation between the three countries, which again lias become necessary by the abandonment of the gold standard, linking currency with sterling. POSITION IN SOUTH ARFICA. MUST LEAVE GOLD STANDARD. CAPETOWN, January 6. A number of farmers’ meetings, which declared against the Government adhering to the gold standard, culminated in a largely attended meeting at Standerton, which unanimously requested the Government to link with sterling. General Smuts stated that South Africa would have to leave gold. “We have striven to rebuild the nation after the devastation of the Boer War. We are at present in a worse position than when we returned to our wrecked home,” he said. BRITISH CURRENCY. RECENT STRINGENT ACTION. (British Official Wireless.) RUGBY, January 6. (Received Jan. 7, at 5.5 p.m.) Speaking to representatives of the foreign press in London, Sir John Simon (Foreign Secretary) said that the very stringent action which the Government had had to take lately to maintain currency and correct the balance of trade was an emergency action to meet an emergency situation. It had not the smallest desire to inflict any injury or inconvenience which could be avoided. It would be a great mistake to suppose that these very firm, and in some respects very severe, measures were in themselves part and parcel of a deliberate fiscal policy. The fiscal policy to be adopted was a matter for future consideration and decision.

THE POUND STERLING. NO ATTACK FROM FRANCE. (British Official Wireless.) RUGBY, JaJnuary 6. (Received Jan. 7, at 5.5 p.m.) The statement that the French banks are launching an attack on the pound sterling by withdrawing their balances was denied in authoritative circles in the city. Ever since Britain went off the gold standard the attitude of the French bank authorities towards sterling has been friendly and helpful and there is no indication of any likelihood of a change. FINANCIAL NEWS COMMENT. LONDON, January 7. (Received Jan. 8, at 0.30 a.m.) The Financial News expresses the opinion that the likelihood of a balanced Budget here, while both Prance and the United States will have considerable deficits, will in due course lead the people both here and abroad to revise their opinions of the intrinsic value of the respective currencies.