Characteristically the British Government has recognized the pressure, of public opinion on the operations of the Equalization Fund and has endeavoured with a discreet frankness io temper the oyster-like re-licence which the responsible banker cultivates when carrying out delicate monetary manœuvres such as are involved in the Exchange Equalization Account, The concession has obviously necessary because the Ge has invoked the authority of the House of Commons to increase the Fund from £950 millions to £550 millions. In reviewing the history of the Fund, Sir John Simon was able to show that it had been successful in promoting steadiness and checking speculative adven-turės after the restraining influence of the gold standard had been removed. The decision to disclose the amount of gold held in the Fund at a given date avoids the danger of supplying the currency speculator With a heaven-sent opportunity, for it makes the six-monthly announcements relate-to periods three months. in arrear, Thus on June 30 the amount of gold held en March ZI is revealed. On December 31, presumably, the figures for September 30 will be given. Sir John was able to make the reassuring disclosure that on March 31 the Account held but a trifling amount of foreign currency Free from the dangers of unexpected fluctuations, the Fund is thus in a healthy state; the soundness, of sterling has been well maintained, The House's péaction to this frankness shows that, so long as cognized precautions to outwit the, speculator are taken, the sponsors of a managed currency have everything to gain by putting as many of their cards on the table as is consistent with efficiency and banking propriety. The chief asset on which successful currency management relies is public confidence and that develops naturally from command of informa-n to which the public may legitimately feel it has the right to lay claim.
Text read from the printed page and cleaned; old type leaves the occasional error.