Salt Lake Telegram | 1932-04-16 | Page 11 | How British Pay Debt without Gold

HOW BRITISH PAY DEBT WITHOUT GOLD BOLD GOLDy By y FRANK II H. I. I Associated Press Financial Writer Wrier NEW YORK April Apri 16 16 Co is mailing checks totaling 20 to 10 American Amerian banks bank today The Te payment is being made by the Morgan firm as the fiscal agent inthis inthis in inthis this country of the British govern govern- gover ment ment It I will wi wipe out the banking credit obtained last August August Au Au- gust in Britain's futile fute effort to av avoid id being pushed off of the gold standard Three things have helped the British Brit British Bri ish bankers say These are the recent heavy shipments shipments ship ship- shIp ments ment of gold from India and Arabia to England the wholesale shifting of international capital from other financial financial finan finan- cial centers back to London when il it i became apparent that Britain was going to weather the storm and nd the action acton of the British BrIsh public in selling whatever gold trinkets trinket or art objects object they had to the British government which was buying gold at a premium in the open market The work of setting up dollar dolar balances balances bal bal- ances in m this country to extinguish the banking credit was made easier because o of the remarkable rally raly in sterling exchange In one day alone the pound soared 20 cents cent As s a arc re result re- re suit sult sul of this the British treasury was better able to sell sel sterling acceptances in jn beter New York for American dollar dolar acceptances and thus set up the needed needed need need- ed cash balances No gold shipments shipment to the United States were necessary