UNEASINESS FELT IN BRITAIN

Southland Times, Issue 24758, 1 June 1942, Page 5

UNEASINESS FELT IN BRITAIN

POSITION OF FOREIGN EXCHANGE (Rec. 6.30 p.m.) LONDON, May 30. Britain’s foreign exchange position is causing certain uneasiness. Despite the Lease-Lend scheme and the willingness of the Dominions and certain foreign countries to accumulate sterling balances in London, foreign exchange reauirements remain substantial. The City expresses the hope that Washington will take a liberal view of the pooling' of financial resources. One London quarter suggests the only solution is the diversion of shipping space, labour and material from war production to cover urgent foreign exchange demands. The increased wool-clip prices are estimated to cost the Government from £12,000,000 to £15,0000,000 yearly, >with an additional gain to the- Dominions from the 50 per cent, snare in possible profits on the higher dollar receipts from exports to the United States. . , The uncertain position in Russia and Libya slowed down the earlier moderate demand for Australian and New Zealand stocks. The feeling is that lack of opportunity for trustees investments elsewhere will evoke sufficient support to free the market in the absence of serious military reverses.