EXCHANGE EQUALISATION.

Taranaki Daily News, 3 August 1932, Page 7

EXCHANGE EQUALISATION.

A third (factor is the establishment of the £1'50,000,000 exchange equalisation fund announced in the British Budget, which represents the Gavernment’s definite determination to prevent speculators interfering with the exchange position. There is a tremendous amount of international short-term money which, under other conditions, -would have been directed to long-term investment avenues. This involves the movement of a vast volume of international money from one country to another, causing violent exchange fluctuations and upsetting equilibrium by heavy flooding or equally heavy. withdrawals. Britain suffered twice during the past year by the reverse processes. Whereas the withdrawals of a large amount of short-term money from Britain was a big factor in forcing her off the gold standard, she was equally embarrassed during the past few months by the inflow of a great volume of international shortterm money. Fluctuations in exchange have been' caused more by the movement of this short-term money than by the actual balances of trade between the countries. Whether the stabilisation fund of £150,000,000 is sufficient has not yet been demonstrated, but nevertheless it will be a big factor in checking the instability of sterling exchange in relation to the gold dollar. The question is being discussed in conference circles whether Britain will indicate with sufficient definiteness whether this recent policy will be steadfastly pursued whatever happens, also whether Britain can do anything more.

DELEGATE'S HEAR BROADCAST. MAKING OF TALKIE FILMS. By Telegraph—Press Assn.—Copyright. Rec. 10 p.m. Ottawa, Aug. 2. The Empire delegates assembled at Parliament House took seats in ’ the chamber and heard an impressive broadcast of the Prince of Wales’ unveiling of the Thiepval memorial. Reception was remarkably clear. Later Messrs. Bruce and Coates repeated their opening speeches before a sound "camera for a world-wide talkie film, remedying earlier technical defects.