GOLD PURCHASE.
CHANCELLOR EXPLAINS. BANK OF ENGLAND HOLDING. CHECK ON FLUCTUATIONS. (Omciai Wireless.) (Receved Feb. 24, 12 noon.) RUGBY, Feb. 23. Replying in the House of Commons to a question regarding the recent gold purchases by the Bank of England issue department, the Chancellor of the Exchequer, Mr Neville Chamberlain, said for various reasons 'large amounts of foreign money had been coming to London recently, which was “bad money" in the sense that they could not rely on retaining them if no precautions were taken. These capital payments might result in a sharp rise in sterling to be followed later on by a sharp fall. Everyone would agree that such fluctuations, which were very harmful to trade, should be limited as far as possible, but it was not in the general interest to state what particular methods might be adopted to check them. He agreed with the questioner that these purchases of gold should be regarded as flexible additions to the bank’s gold holding and that it would be improper to regard them as permanent additions to the gold reserves which might be used in future for restoring cradit.
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Bibliographic details
Waikato Times, Volume 113, Issue 18879, 24 February 1933, Page 6
Word Count
189GOLD PURCHASE. Waikato Times, Volume 113, Issue 18879, 24 February 1933, Page 6
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