AUSTRALIAN POUND

Otago Daily Times, Issue 27091, 27 May 1949, Page 5

AUSTRALIAN POUND

NO PRESENT DEVALUATION * RELATION OF STERLING TO DOLLAR Rec. 11 p.m s . CANBERRA, May 26. In the House of Representatives today, the Prime Minister, Mr Chifley, reaffirmed the Government’s belief that there should be no devaluation of the Australian £ unless the present rate of exchange between the £ sterling and the dollar was altered. He was replying to Mr W. P. Conelan (Labour), who asked if he had seen a statement attributed to The Times, London, That many overseas buyers thought the devaluation of sterling was inevitable, and that they were postponing not merely their payments .in ..sterling but their purchases of British goods. Mr Conelan asked if Mr Chifley had discussed the matter recently with the British Prime Minister, Mr Attlee, and was there any information he could give the House. Mr Chifley said that the question of devalution of the Australian £ had been the subject of discussion With quite a number of people, including some who regarded themselves as financial experts. There had been no change of the views expressed here that while sterling. remained as it was in relation to the dollar Australia would retain her present position. “ There have been suggestions by certain economic experts from the United States that it may be necessary for a certain readjustment of European currencies,” Mr Chifley added. “ These suggestions do much harm because they result in speculators shifting money about, making a profit, and creating instability.” The signatories of the Bretton Woods Agreement could allow the value of their money to move 10 per cent, in either direction without the approval of the International Monetary Fund, he said. He had discussed these general financial matters with the Chancellor of the British Exchequer, Sir Stafford Cripps, and knew his views fairly fully on the subject.