DECLINE CONTINUES

Poverty Bay Herald, Volume LV, Issue 17640, 2 December 1931, Page 7

DECLINE CONTINUES

STERLING IN AMERICA LOWEST FOR 10 YEARS BRITISH TRADE STIMULATED (Eloc. Tel. Copyright—United Press Assn.) (Received Dec. 2, 11 a.m.) NEW YORK, Dec. 1. The pound sterling to-day continued its abrupt decline, breaking more than mine cents to 330 cents, the lowest in 10 years, and only 12 cents above the record low ([notation of 318 cents readied prior to the return after the war to a gold basis. Sidling continued from all sides, from Britain, France, Holland, and other principal financial countries. According to advice from Wail Street, no efforts have yet been made on the part of the British Government to stabilise the pound, the jinoent intention apparently being to let it seek its natural level. Although French bankers and the French Govetnmewt are isaul -to be favorable to stabilisation, and are reported from Paris to be willing to advance credit, Wall Street bankers doubt that such a move will be 'attempted at an early date. Britain's foreign trade, according to reports, is being stimulated by the lower price of sterling.

A SERIOUS BREAK VALUE OF STERLING VERITABLE “BLACK MONDAY” LONDON, Dec. 1. The first and worst break in sterling since the earliest days of the suspension of the gold standard lias startled the country. Tim newspapers feature the rate on New York at 14s, and on Laris at 14s with lengthy explanations and speculations. Tho Financial Times describes it as a veritable ‘ Black Monday. ’ The principal factor was a bear raid by Continental operators. Jim .Financial News says well-in-formed members of the Stock Exchange are not alarmed. It is- believed that the day’s turnover on the foreign exchange market was quite modest. The fall was excessive and may bo attributed chiefly to sales of sterling by nervous foreign holders, and by purchases of currency in order to pay for recent imports ou a market devoid of support.

BACK TO GOLD BANKER'S SUGGESTION LONDON, Nov. 23. Declaring that Britain, like a majority of countries throughout the world, had failed to manage Her currency to meet world conditions arising largely out of the fall m prices, Mr. Frederick Uoodenougti, a member of tho India Council and chairman of Barclay’s Bank, emphasised the need for a gradual general return to some system involving a greater degree of automatic currency control.

Tho adoption of such a system as world conditions improved would enable the pound to return Lo gold. Mr. Goodenough said lie did not believe that the different parts of the Empire would agree to their currency being managed Horn a comhion centre, but as the world became normal it would be possible to provide an Empire currency to meet all requirements. There would he no better system than the old sterling currency.

RECORD GOLD PRICE (Received Dec. 2, 11 a.m.) LONDON, Dec. 1. Gold is quoted at 1255, the highest on record.