* * * *
CONTINENTAL FEARS.
During the past few weeks Foreign markets, and especially Continental markets, have been alarmed by distorted reports of certain developments here. The departure of a small section of Liberals from the Cabinet owing to the fiscal con- troversy has been construed abroad as portending the break-up of the National Government. The unsatisfactory figures of unemployment have also aroused concern abroad, although, be it noted, similar conditions prevail elsewhere, and not least in the United States. Reports that the Government was reconsidering the Means Test were interpreted abroad as indicating a return to the full dole system, while, finally, exaggerated reports with regard to riots and " hunger marches here have also played into the hands of foreign Bear speculators in the sterling exchange. The result has been to drive down the value of the pound as measured in French currency to about 13$. 7d., and as measured in dollar currency to about 13s. 70. The fall being accentuated by Continental speculative operations. This, of course, involves considerable loss to all in this country who have to make payments abroad, and while, on the- other hand, the fall in sterling should ordinarily tend to stimulate foreign purchases of British goods, such purchases are restricted at the moment by reason of the impoverished state of almost every country. A. W. K.
Previous page
