Evening star., 1932-11-06
DROP IN STERLING
ST|RSL|TTLEFEAR.
English Financier Reports No
Present Move Back to
Gold Standard.

British bankers and business inter-
ests are not deeply concerned over the
recent sharp drop in sterling exchange
rates, said Charles E Hoare, descend
ant of one of the Oldest banking FAM
lilies in England, whc is visiting the
United States for the first time The
original Hoare Bank was established in
Fleet street, London. 60 years prior to
the establishment of the Bank of Eng
land. Maj Hoare, who is manager of
the London office of Fenner Beane s.
Ungerleider, has for the past decade
specialized in the American securities
market from the British viewpoint and
is at present in this country to study
conditions here
In view of the fact that the gold
standard was abandoned for the pur-
pose OF acquiring a So-called natural
tariff. Brltishers see no particular rea-
son for supporting the pound at the
present time" Maj Hoare said. And
SO long as the present party continues
In power there appears to be no reason
Tor pegg1ng sterling or either return
ing to the gold standard for some time
to come. AS to what level sterling will
be revalorized, current guesse5 range
from SO to $3.50. The actual value to
be established could be nothing more
than guess, but it is safe to predict
that the old standard will never BE-
re-eStablished
Cost of Living Steady.
British bankers and business inter-
ests appear satisfied with present con-
ditions in view of general world con-
dltlonS and all agitation which devel-
ops from time to time for re-establish-
ment of gold standard, at whatever
level comes from outside rather than
from within England-chief1y from the
United States and France.
There has been no imitation in Eng
land and the cost of living shows no
indication of rising. Business can be
carried on profitably at present from
the British viewpoint. AS result there
should be no reason to fear that sterling
will drop to very low level. Exchange
is just like a commodity. and London
is still the biggest discount market in
the world. Naturally. heavy balances
are still carried in our market by for
eign countries. Consequently. after each
sharp break in sterling, foreigners, eSpe,
cially the French, Immediately pur-
chase sterling, and such purchases tend
to prevent collapse of sterling.
British Business Better.
British business started to improve
last Spring continued Maj. Hoare,
land further improvement has been
noted since that time. The upward
movement is by no means pronounced,
but there is noticeably greater conf
dence. The British are conservative
race and 90 not look for any rapid
recovery. Therefore. there is no at
tempt on their part to discount the
recovery. hence the absence of imitation" !"
Regarding the Ottawa conference
Maj. Hoare said that the results of
this meeting should eventually enable
the British Empire to be on a self
supporting basis.
Speaking of conditions in this coun-
try. he said. in his opinion. the securities
markets at the present time are act
ing naturally in view of the presidential
election. From the British viewpoint
he added. it matters not which candi
date is successful. as either one will
have the interest of the Nation at heart
ard enCeavor to evolve measures of a
constructive nature. Foreign countries,
he concluded, are interested in the tariff,
q modification of which would naturally
benefit them.