STERLING WEAKNESS

Timaru Herald, Volume CXLV, Issue 21210, 3 December 1938, Page 5

STERLING WEAKNESS

PRICE REPERCUSSIONS FEARED AMERICAN WOOL INDUSTRY CONCERNED United Press Association—By Electric Telegraph—Copyright (Received December 2, 7.55 p.m.) NEW YORK, December 1. The Chicago correspondent of “The New York Times” canvassing members of the National Wool Marketing Corporation during a meeting, found them reasonably satisfied with the AngloAmerican Trade Treaty, but they were disturbed over the possibilities of a similar pact with Australia. Considerable apprehension was also felt regarding the continued weakness of sterling. Since prices for fine domestic wools are now approaching Import parity, it is felt that any arrangement in fixing the value of the pound at a low figure would have immediate price repercussions on the American raw wool market. WHEAT SALES TO UNITED KINGDOM SUBSIDY TO HELP MEET WORLD COMPETITION United Press Association—By Electric Telegraph—Copyright (Received December 2, 6.30 p.m.) WASHINGTON, December 1. The Department of Agriculture has announced that arrangements have been made for the sale of 20,000,000 bushels of wheat to flour mills in the United Kingdom by the Federal Surplus Commodities Corporation which will subsidise the transaction through the American Exporters Corporation. The former body will purchase the wheat at domestic prices for resale to exporters at a price enabling them to meet world competition in the United Kingdom. The wheat will be delivered over a period of several months. This brings to 68,400,000 bushels the amount of wheat arranged for export out of 100,000,000 bushels planned for disposal from the surplus.