Exploding the popular notion that sterling would not be allowed to fall under the ancient parity with the dollar at the rate of 4863, bears caused sterling to drop below parity for the first time since May 15, 1935.
During the day there were violent fluctuations, sterling close at 4854.
Faced with a tidal demand for dollars, partly from the continent, the British Equalization Fund aba doned its defence of sterling and de-elded t conserve gold stock. On this move the price of gold jumped up to 142s. id, the highest since May 11, 1935—a price so steep that it was interesting only to hoarders who took a moderate amount Except for the French Franc, which was steady, the continental currencies: fluctuated unusually, turning weak against sterling throughout the morning and. then strong in the afternoon. This caused siderable anguish to dealers making effort to avoid losses, The steadiness of the French Frane was considered as evidence that currency movements were inspired less by fear of war—since war presumably would put the great Strain on the French Frane—than by considerations either for profit or the stability' of assots—United Press.
Text read from the printed page and cleaned; old type leaves the occasional error.