GREAT SHOCK

Stratford Evening Post, Volume II, Issue 225, 21 April 1933, Page 5

GREAT SHOCK

BANKING CIRCLES PERTURBED , Decision of United States ] WRECKING ITS CURRENCY Press Association. —Copyright. ! London. April 20.—Messaaes from Washington to the effect that th» United States administrat'oii will not supoort the dollar abroad bv means of shipments of qold created considerable excitement this in foreian exchange circles in London, whero th« sterling do'lar fluctuate <* freelv and at one time touched 3.f n . It finished at 3.6" H, compared with c. 49 at Tuesday's close. "Th*» news of developments in the Fnited States' rurrencv policy will produce full effects on the markets, but it cnme £s a £?rent shock in banking circles, where }♦ bqd been hoped America would not d" l ib°'-atf>lv wreck its currency." says the Financial News. "It is condemned as sn act calculated to ao-prrnvnte the crisis and throw tl>" wor*d bnck into chpns at the moment it was boned that throueh the conference stability was in "Britain went off the gold standard pf+*>r having spent evry penny of the fold reserve to enable ber to secure fur- #>«"• credits: America has gone off gold while still in nosse c sion of gold with which she could easily have maintained the stabilitv of her currency. She has not driven bv necessity but has taken the step in cold blood." ,

"Prelude to Extraordinary Measures" EFFORT TO REGAIN LOST FOREIGN MARKETS Prpoa Association. —Onpyrleht. Washington, April 20.—The offi-r»-'"1 dropping of the gold standard to-day is viewed in informed circles as a delude to extraordinary measures to regain lost foreign markets. It will effect the debt readiustment and raise commodity prices which, if accomplished, will inevitably be at. least at the partial expense of the so-called depreciated currency sountries. Mr. Roosevelt was formerly opposed to "tinkering with the currency," but in the opinion of his friends the results of the domestic relief legislation, farm relief and public works has been disappointing. Furthermore, deflation has taken place in the last month and the frozen assets in the banks, totalling six to eight billion dollars, have produced a' condition where with the competition of foreign countries oft the gold standard it appears necessary to meet the situation; with modified currency. It is believed powerful bargaining material exists for the conferences with England and other countries, but the immediate anxiety is to halve the ruinous domestic deflation.

Fruit Circles Pleased

Press Association —Copyright

San Francisco, April 20.—Fruits export circles here were elated as the pound sterling rose, and by the same token the ability of British buyers! to purchase California's dried, canned and fresh orchard products. The United Kingdom is California's best foreign customer, but California of late has found Australian competition in the Baitish markets a restricting factor. The rise m the pound tended to cut down the advantage Australia gained when Britain dropped the gold standard.