11 JANUARY 1997, Page 24

Cat 0, Mice $2.40

ROY BRIDGE was the Bank's chief dealer who had to defend the pound at $2.80. (This week's rate: $1.69.) Watching him in action, Charlie Coombs of the New York Fed likened him to an experienced cat qui- etly appraising an unwary mouse. In the end, the mice overrran the Bank and the pound was devalued — to $2.40. He took defeat to heart. When I last saw him, the pound was having one of its false dawns (nothing new about them) and I said that he must be pleased to see it stronger. 'Strong pound?' he snapped. 'Let me tell you, young man, that when I used to go on holiday to Switzerland before the war, there were 25 francs to the pound.' This week's rate: 2.29.