Evening star., 1938-09-29
POUND AND FRANC
STAGE RECOVERY
Foreign Exchange Dealings
Quiet at New York, but
Active Abroad.
by the Associated Press.

Ry the Associated Press.
NEW YORK, Sept. 29.-Foreign ex-
change traders pushed the pound
sterling and French franc higher TO-
day as the financial community as
sessed rs optimistic reports from the
four-power conference at Munich
called to settle the disposition Of
Czechoslovak Sudetenland.
The upward movement failed to at
tain the momentum it achieved yes
terday when first announcement Of
the conference call reversed a heavy
downward swing. Dealings were quiet
in New York, but were active In Euro
pean centers.
Sterling, after its heavy drop and
subsequent recovery yesterday picked
up 2l7 cents in New York dealings,
while the French franc moved .0lh
Of cent higher. The so-called
refuge" currencies into which the
pound and franc had been moving
lately were lower, in tune with the
dollar, Netherlands guilders losing 10
OF a cent. Swiss francs the same
fraction and the Belgian belga .05
OF cent. The German mark likewise
dipped .05 Of a cent. The Canadian
dollar was up .3lA of cent.
Funds Repatriated.
Repatriation of some of the huge
balances that have flowed in recent
weeks to New York, Amsterdam, Basel
and Brussels was seen In the currency
movements.
In London dollars were freely sold
and the rate for the American unit was
4.74l2 to the pound, compared with
yesterdays final rate Of All. Closing
Paris dollar sales were at the equiva-
lent Of 1858 cents to the franc in con-
trast with the New York overnight rate
Of 2.652 cents.
Evidence Of the almost frantic
boarding that has been going on in
countries likely to be affected by pos
sible European hostilities was shown in
the weekly statements of the Bank Of
England and Bank Of France, the for
mer as Of yesterday and the latter as
Of September "a.
Circulation of the Bank of England,
1t was disclosed, jumped G2l .696. 900
during the period. an almost unprece-
dented f1eure, in response to the de-
mand for cashs At the same time the
reserve supply Of bank notes dropped
by Ell. 1854 900 to f26, ,945. 900, new low
since August 4, 1887. Ratio of reserve
to deposit liability slumped to 1T per
cent from 30.6 per cent a week ago.
Bankers pointed out that should the
war tension continue to diminish,
return flow Of notes was to be ex-
pected in the coming week.
French Circulation Up.
Circulation of the Bank of France
gained 1882 900 900 francs. and while
the gold reserve was unchanged the
ratio OF gold to sight liabilities WAS
on to 1901 per cent from 1859 per
cent the preceding week. Temporary
advances to the state, indicating the
Treasurys need Of funds during the
crisis, increased l.5oo, o,ooo, 900 francs.
New York noon foreign exchange rate.
ioiiow: 10 Great Britain in dollars others
Great Britain. 4.76: 60-day bills. 4.74h;
Ganada Montreal. in New York as.3t
lSS3: Czechoslovakia 3.45: DenmsrK.
r.n1 ln' rianiand. aa sl2: France: :" 68Ia Ger
1913: Greece. ..ss: Hunaar,i 1888: IItvs1 Itsiy
?26A; YuEoslavia .34; Netherlands
sussl sss2 so55yays s9msni, 1a;a1 Poland ss1; PoI-
quoted; Sweden. "a SO: SwitzerIand 90 XIX
M..eo MATsdnainsi etv 81 - 5on BIszii dssel 5eon
Kone 20 IS: shanehai. IT.4O.
Rates in SPOT cables unless othervise
indicated. n-Nominal