DECLINE OF THE DOLLAR

Otago Daily Times, Issue 21993, 30 June 1933, Page 8

DECLINE OF THE DOLLAR

HEAVY SELLING IN LONDON STABILISATION ESSENTIAL. (United Press Association.) (By Electric Telegraph—Copyright.) . LONDON, June 29. (Received June 29, at 11p.m.) The Daily Telegraph’s financial editor says: “The lack of confidence in the dollar has extended to America, hence there has been considerable selling here. So far no official check has been put on the decline, and the deterioration may proceed rapidly. The United States can stop the movement at any time by announcing the stabilisation level, and it must therefore be assumed that events are marching according to plan. In the meantime the Bank of England has agreed to hold the franc. The Bank of France will collaborate in supporting the guilder as long as France and Holland permit gold exports.” The Daily Telegraph’s special correspondent says it is gathered that President Roosevelt is prepared to accept the advice of Professor Moley bn whether there should be temporary stabilisation or not. The question will be decided during Professor Moley’s visit. The Daily Express says that bankers will again confer in London on Friday in another effort to secure stabilisation. America’s recent objective was 4.30 j but it is stated now to be 4.65. THE SLIDE CONTINUES. , LONDON, June 29. (Received June 80, at 1.45 a.m.) The slide of the dollar continues to cast a shadow over the conference. There has been a revival of the story that the gold countries demand that Mr MacDonald should agree to some measure of temporary stabilisation. Indeed, French circles sense that condition of international psychology which forebodes panic, and think it is all too bad that gold is pouring into England for sanctuary and to the disturbance of world equilibrium. FRANCE MAY ABANDON GOLD, s NEW YORK, June 29. (Received June 30, at 1.45 a.m.j The sensational market rises of the past few days suffered a reversal to-day, as heavy profit taking among commodity speculators iVas counteracted by the cheapening of the dollar against foreign currencies. Sterling touched 4.43 J, the highest since England abandoned gold in October, 1931, and closed at 4.37£. Measured by the French gold franc, the dollar is worth but 76.34 cents. Reports that France and her Allies are' likely soon to abandon gold, with the possible dropping of the standard by other gold countries, have aroused speculation in financial circles, with the possibility of the unprecedented situation of no country in the world being on gold. Thus there would be no standard measure of value, with an undoubted disturbing effect on world trade and external investments in various countries.