RETURN TO GOLD STANDARD.

Timaru Herald, Volume XCVIII, 27 April 1925, Page 7

RETURN TO GOLD STANDARD.

American Support of Britain. FEDERAL BANK AND IMPERIAL TREASURY. By Cable—Press Association—Copyright. Australian and N. 3 °able Association (Received April 26, 5.5 p.m.) NEW YOltK, April 24. Britain’s plans to restore the sterling to a gold parity basis, have the support of American bankers by credit arrangements through a private banking loan, or the purchase, by Eederal Reserve Bank, of sterling bills. It is indicated that the method most likely to be adopted is by a discounting arrangement with the Federal Reserve Bank, in New York, which will assure the British Treasury of a constant supply of. dollars and regulate the market. Heavy buying of sterling, in anticipation of the • announcement of Britain’s return to the gold standard and Mx- Churchill’s budget. speech, sent the demand for bills within six cents of par, the highest since 1915. Sterling reached 4.81 dollars to-day. FORECAST OF BRITISH BUDGET. FREE FLOW OF GOLD AT END 1 OF YEAR. By Cable —Press Association—Copyrijht. Australian and N.Z. Cable Association. (Received April 26, 5.5 p.m.) ' LONDON, April 24. The “Daily Telegraph’s”-.parliamen-tary • correspondent forecasts that the Budget will include import duties ou luxury articles, which is practically a revival of the McKenna duties, which produced £3,000,000 annually. It is confidently expected tliat Mr Churchill will announce that the Act prohibiting the export of gold, which expires at the end of‘the year, will not bt renewed, and lie may, indicate the date on which it is proposed that Britain will revert to the gold standard, which Mr Reginald McKenna (the wellknown banker) pointed out recently does not mean that gold sovereigns will again be put into circulation.