THE POUND

Southland Times, Issue 22107, 30 August 1933, Page 7

THE POUND

RELATION TO DOLLAR STABILIZATION AGAIN SUGGESTED BANK CHIEFS CONFER (United Press Assn.—Telegraph Copyright.) (Rec. 7 p.m.) New York, August 28. It is suggested that Mr George Harrison, Governor of the Federal Reserve Bank, and Mr Montagu Norman, Governor of the Bank of Eng- - land, have been discussing the advisability of the stabilization of currency in foreign exchange, but not the slightest hint has been given that Mr Roosevelt feels the time is right for this. Mr Norman, after opening a series of conferences with Government officials at Hyde Park, stayed for an hour or more, but did not engage the President in private conversation on international financial matters, his visit being purely of a social nature. Although Mr Norman kept the object of his business secret, it is reported that he suggested the advisability of pound-dollar stabilization, which American officials again tentatively rejected pending the outcome of the domestic recovery policy. GOLD SHARES FEVERISH DEALINGS. SUBSTANTIAL GAINS. (United Press Assn.—Telegraph Copyright.) London, August 28. Owing to foreign exchange developments the scramble to deal in gold shares made the Kaffir market difficult to reach. Kaffirs fluctuated wildly in the first few minutes, rises of 6d to 7/6 occurring throughout the list. Heavy profit-taking followed, but there were still substantial gains in gold shares in the afternoon. The City editor of the Daily Mail commenting on the feverish dealings in gold shares considers the policy of the authorities is to allow sterling to follow the dollar and not the franc. If the dollar continues to depreciate sterling will probably follow, intensifying the gold boom. Moreover, sterling nominally tends to depreciate in the autumn owing to commercial requirements. A British Official Wireless message states that to-day’s fall of 71d in the price of gold caused some profit-taking. West Africans, Indians and West Australians went up. The other major feature on the London stock markets was the continuance of the steady rise in home rails. Gold is now quoted at £6 8/8J per ounce. FOLLOWING STERLING. SOUTH AFRICA'S INTENTION. (United Press Assn.—Telegraph Copyright.) Cape Town, August 28. The Hon. N. C. Havenga has returned from the Economic Conference. He is disappointed that nothing was done towards establishing gold as an international standard until the American policy had had time to operate. He ridicules the rumour that the Government contemplated the devaluation of currency. The Union would follow sterling. SOVEREIGNS SOLD 6000 REALIZE £9OOO. (United Press Assn.—Telegraph Copyright.) (Rec. 8.45 p.m.) London, August 29. A firm of London bullion brokers paid a man, apparently from overseas, £9OOO for 6000 sovereigns, which are believed to be his savings for years. VALUE OF GOLD FALL NOT EXPECTED. (United Press Assn.—Telegraph Copyright.) (Rec. 8.45 p.m.) London, August 29. The Financial Times _in a leading article expresses the opinion that gold is likely to retain its value even if some European States are forced off the gold standard, though it discounts the fear that France may abandon gold. It adds, that while suspension of the gold standard tends to limit the supply, the demand is maintained, which does not look as if further suspensions will necessarily be the prelude to a fall in the price.