Evening star., 1939-09-05
British Bank Embarks
On Rigid Control
Of Currency
London Authorities Take
Pound at $4.02 and
Sell at $4.06'
BY the Associated Press.

BY the Associated Press.
NEW YORK, Sept. 5.-Foreign ex-
change dealers said today 1t ap-
peared the Bank of England had
embarked upon rigid wartime con-
troll of England's currency.
Wall Street banks, it was said,
had been informed the British au-
thorities would take sterling at $4.O2
and sell at $4.06, thus giving the
market definite limits for opera
tions in exchange. The pound was
S468 two weeks ago.
Since sterling long has been the
pivot of trade in European cur
srencies, the action was expected 10
influence other rates.
Considerable business was re-
ported to have been transacted here
around $405 for sterling. down 10
cents from last weeks final rate.
The French franc was quoted at 2.3l
cents at one time, off about .O8'2 OF
a cent.
The sterling rate subsequently
went to around $408 and the franc
moved up few points with it. Deal
ers explained sloWness of communl-
cations and uncertainty how long
the Bank of England would continue
to sell at S406 mostly accounted
for the higher New York rate.
Described as Nominal.
Quotations in some currencles
were described as only nominal be-
cause it was still difficult to operate
and obtain quotations from abroad.
The action of the Bank of Eng
land in taking over directly pur-
chase and sale of gold from the Lon
don open market was seen by deal
ers here as part of the move TO
peg" the sterling rate under war
time conditions.
Heretofore. it was explained, the
British authorities regulated ex-
change. fluctuations indirectly
through the open-market for gold
and operations of the stabilization
fund.
Swdyed by sterling, the Canadian
dollar went to further discount in
terms of the American money unit.
Dealers quoted the Canadian cur
rency at one time at 81 cents, down
nearly cents from the previous ses-
sion
U. S. Officials Alert.
Eoloro1 o,1tInritioc rnaonuyhI1p
kept a close watch on the exchange
market.
The Foreign Exchange Committee
appointed last week to cooperate
with the Federal Reserve Bank of
New York for the emergency sent
out QUESTIONABLE to ascertain the
outstanding commitments in foreign
currencies by New York dealers.
Exchange men said they could
only conjecture whether this was a
prelude to action, but pointed out it
was logical for the Federal money
authorities to gather all the infor-
nation which might be pertinent to
any Government regulations.
Incoming liners brought additional
large shipments of gold from Eu-
rope, but it was assumed England
and France would conserve remain
ing gold holdings for war purposes.
Late quotations follow:
Great Britain in dollars, others in cents.
Great Britain, demand, unauoted Great
Britain, cables 4OS; 6O-day bills. un-
quoted: 9O-day bills unauoted; Canada,
Montreal: in New York, 81 Don; Canada,
New York. in Montreal 100 Don: Belgium,
1920; Denmark. 1910; Finland, unauoted;
France 2.35: Germany. unquoted; Greece,
80; Hungary. 1875; Italy, 5.21: Neither
lands, $500: Norway, % s5; Poland, so;
Portugal, 4.@6; Rumania, ~; Sweden,
1890: Switzerland. $3.50: Argentina (off-
claD. unauoted; Argentina Gree, $3.50;
Brazil tofhcian. unouoted; Brazil free),
unquoted Mexico, 1925 Japan "a Don;
Hong Kong, $50; Shanghai. 80; Yugo-
Slavia. go.
Rates in spot cables unless otherwise in
dcated.
Nominal