Authoritative London circles in close touch with the United States Government informed Reuter to-day that no inflationary intent underlies the new policy, nor does it mean the resumption of currency experiments. The decision should be regarded merely as a gesture by the Treasury to show a desire to release the deflationary brake.
It is intended that any gold leaving the United States will be taken from the Sterilization Fund, thus leaving the credit base unaffected; whereas imports df gold up to $10,000,000 per quarter will go to swell the country's potential credit basis.
In the foreign exchange market todày, the dollar, in quiet dealing: temporarily weakened to 502.87 cents on Continental and mostly Swiss selling, but subsequently recovered part ally to close at 502.65 cents compared with 50245 cents yesterday.
In response to the United States Treasury's announcement, rubber hardened 1/16d, to 7d.—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.