Evening star., 1932-03-12
BRITAIN SEEKING
STABILIZED POUND
Parity May Be Effected al
Some Figure Between
$3.50 and 81.
Special Dispatch TO The Star.

Special Dispatch TO The Star.
NEW YORK, March 12.-It may be
premature to discuss the date when
Great Britain will stabilize her s=-
change and the rate at which stabfn-
zation will be oficially established. The
question. however. has been actively
promoted by the sensational rise in
sterling this week.
1t is unlikely that stabilixation will be
enected this year. There are advan-
tages to Great Britain in continuing
her present program, which promotes
the economic and trade benefits that
accrued from going of the gold Stand-
ard In effect, sterling had been stabil-
lied at slightly under $3.50 for the
pound for some time prior to the latest
move in it. It was only when the pres
ence Of selling for London account was
lifted that the market entered its pres
ent buoyant state.
DevaIuation Of Pound.
Few believe that the pound will be
returned TO It's old parity, although, fol-
lowing the announcement of gold sus-
pension last September, predictions we're
made that this would occur within q
reasonable time. 1t is now recognized
that In order to cope with her competi-
tors England must devalue the pound
In the same way, though not to the
same extent, as did France some years
ago In bringing down the franc to less
than one-fourth Of its original figure,
1t took long time for the French gov.
ernment, as well as the authorities in
Belgium and in Italy, to arrive at a de-
cision with respect to the element Of
value OF their national currencies. An
equal period OF study will probably be
given to the subject by the bankers and
statesmen Of England.
Opinion here Is that the pound will
be stabilized somewhere between $3.50
to -. This Is revision OF earlier
estimates OF what it would be necessary
for Great Britain to do to correct her
financial situation, for the earliest judg.
ment was that sterilization would be
nected between 50 and $3.50. The low
point reached in sterling's decline was
SS.24, representing a depreciation from
parity OF approximately one-third.
Sterling did not get quite so low this
tlme as 1t did in the war crisis, when
1t touched $3.18. It has now had a re-
covery Of so cents in the pound.
1t Is generally admitted that the DO
sltlon OF the British economy has Inn
proved strikingly since the first or this
year. This is due to the courageous
way with which England has attacked
such subjects as taxation and the tartff
and also to the support given to the
government by the British people in
meeting the extraordinary demands or
them. The prestige of Great Britain
has been enhanced materially since the
announcement last week that she would
anticipate payment on a large portion
OF the credits secured from the United
States last Summer. Information to-
day was to the effect that the remains
ing portion of the credit will be paid OF
before 1t Is due. The general banking
position in England is strong, as indi-
Gated by the year end reports of the
nVe Joint stock banks, which showed
tnat they had been able to write off
tne depreciation in their securities and
10 make ample provision for bad debts
without changing their status.
Buying Dollar Securities.
Of late London has been a buyer of
dollar securities. At the same time the
seilng OF such securities by France has
steadily decreased and has finally been
discontinued, The strength of sterling
ana the coincident weakness In French
exchange have led to the Conclusion
that the feature of international bank
ing this year will be the slow recovery
In Englands credit position and the
Steadily less favorable status of French
economy, with the prospect of with
draWals OF gold from the Bank of
france in contrast to the gold acere-
Eons OF the past two years.
Copyright. 1s32) t