London, Jan. 6.
In connection with the recent heavy speculation in sterling, Reuter learns from reliable sources that all banks and bullion firms have been asked by the Treasury to refrain from aiding speculation. against sterling, either by means of loans against gold or by speculation in gold or foreign exchange.
All banks. operating in countries adhering to the Tripartite Agreement, it is fürther understood, have received a similar request, Weakness of The persistent weakness of British Government securities, which yesterday registered further sharp declines, provided the principal topic for dis. cussion in City circles.
Leading jobbers and dealers of British. gilt-edged securities, it was pointed out, have been bearish for some weeks on the theory that the level prevailing prior to the present decline' was too high to render successful further Government borrow: ings for armament purposes.
Moreover, in view of the weakness of. sterling, the public at large were not investing their savings in British gilt-edged issues to the same extent as before. Consequently, with buyers almost absent, offerings caused disproportionate recessions.
Selling emanates firstly from Briti holders, in preparation for income-tax payments, and, secondly, from foreign investors who continue to repatriate their London funds. The suggestion contained in the News," that the Exchange Equal Account should come to the British gilt-edged securi nz surplus funds therein, ved in a reserved manner,
Text read from the printed page and cleaned; old type leaves the occasional error.