DROP IN DOLLAR

Taranaki Daily News, 12 July 1933, Page 7

DROP IN DOLLAR

STABILISATION QUESTION

AMERICA MAY SOON AGREE

THE MONETARY COMMITTEE

GOLD COUNTRIES ABSENT

BRITAIN CLINGS TO FRANC

By Telegraph —Press Assn. —Copyright. Rec. 7.0 p.m. London, July 11. When the British delegate submitted to the monetary sub-committee his draft resolution in favour of continued discussion of certain questions, many delegates were absent, notably the gold countries’ representatives, and the proceedings had to be adjourned. Tape machines are recording a continued drop in the dollar. ; ; The report of Mr. Chamberlain s speech in the House of Commons attracted much interest in the conference lobbies. It is suggested in some gold quarters that the dollar is dropping so steeply that the United States might be ready to discuss stabilisation within a week. The French Cabinet to-day considered steps to be taken in the event of prolongation of the conference. No decision was reached. A section of the Cabinet favoured continuing the discussion of commercial problems with the gold countries. Despite Britain’s refusal to co-operate with the gold countries in stabilisation the Bank of England is hanging grimly on to the franc, says the financial editor of the Daily Herald. At the moment there is a transfer of international funds from the pound to francs, but a much larger transfer out of dollars. Mr. Montagu Norman has been working so long and earnestly for an alliance between the pound and the gold standard currencies as a prelude to the British return to the gold standard that ne is not prepared to let the pound get out of pace with the franc. It is a tribute to the Bank of England’s ability and determination that throughout the changing fortunes of the Economic Conference it has kept the pound and the franc exchange almost unchanged, adds the Herald. It is claimed that the gold bloc s campaign against speculation operated successfully to-day, gold currencies being resilient regardless of the slump in the dollar, says a Paris cable.