CONTINUED FALL IN STERLING

Southland Times, Issue 23678, 29 November 1938, Page 3

CONTINUED FALL IN STERLING

LONDON’S LOSS OF FOREIGN CAPITAL GOLD TRANSFER BELIEVED PROBABLE LONDON, November 27. The continued fall in sterling is arousing considerable comment. The Investors’ Chronicle, regarding the. & as still overvalued, expresses the opinion that it will remain overvalued until an increase in commodity prices affects the enormous American export surplus, which is causing part of the trouble. It adds that London’s loss of foreign capital is not regrettable, as it was locked up almost entirely in gold, and accordingly was worse than useless. “The pressure on sterling at present is because we are too near the Continent for comfort, but if it continues sufficiently it will be embarrassing,’ it adds. The Investors’ Chronicle recalls last March, when Britain owned £836,000,000 worth of gold, of which the Bank of England had £538,006,000 and the exchange account the remainder. The latter at present possess only £80,000,000, as £50,000,000 went home to France last May and about £120,000,000 to America during the September crisis. Now £50,000,000 more has followed. Accordingly, a transfer from the Bank of England’s reserves to the exchange account can be expected at any moment. Because of the possibility of the transfer making the position worse through foreign nervousness, The Investors’ Chronicle urges the stabilization of sterling. If British and American authorities decided to allow sterling to fall to 4.60, even 4.50, they should put the rate there and announce that no more variations will be permitted, it says, and hopes of exchange profits would be removed and capital would be prevented from fleeing at the first signs of trouble.

TRANSPORT FOR FAT LAMBS SERVICE AT WAIKAKA DISCUSSED At a meeting of farmers, stock buyers and railway officials at Waikaka, the question of alteration of the existing railway timetable for the handling of fat lambs in season was discussed. Some difference of opinion between farmers of the north and south ends of the valley was apparent, the present service largely meeting the requirements of the latter. No strong objections were made, however, to some slight alteration in the. service to serve several farmers near the Waikaka township or those who make a praptice of using the trucking facilities there, and it was finally agreed to accept the offer of an extra train to be run in the afternoon. Another meeting was held on Saturday when it was explained that lambs had to be drafted one day,' driven to the railway and trucked the next day, and it was the third day before they were delivered to the butchers at the works. It was pointed out that if it could be made possible for them to draft one day and truck and rail the lambs to the works on the second day the farmers would be satisfied. Mr H. P. Mclntyre said an agreement had been reached by the Waikaka Valley branch of the Farmers’ Union that it would not be wise to alter the service to provide for afternoon trains. If afternoon trains were needed a special train could be arranged. The Railway Department, however, had stated that the cost of an afternoon service would be greater. At the same time no objection would be made by farmers in his district to one afternoon train being included in the weekly service. Any drastic change might encourage farmers to make more use of the lorries, and any alteration decided upon should be agreed upon by both parties.

After a long discussion, Mr R. Watkins, business agent for the Railway Department, said the department suggested that the present service be adhered to and that an afternoon train be provided once a week, provided there was a minimum of 25 trucks jffering. This suggestion was agreed to by the meeting on a show of hands, and Wednesday at 3 p.m. from Waikaka was decided upon as a suitable timetable for the afternoon train.

Mr S. W. Ayscn presided at the meeting and there was an attendance of about 40.