The Federal Reserve Board estimated that the combined British, French and Canadian resources in United States funds (in dollar balances and securities' amounted to over $4,000,000,000.
Canadian dollars were in demand early in August owing to the movement of the crops, and were quoted at a premium on New York, but as a result of Canada being a belligerent, values: from the outbreak of war the Canadian dollar remained at a considerable discount in the United States.
Controlled Currencies At present ten currencies are officially controlled—United States. and have found their normal services not required by the market owing to the imposition of the exchange restrictions, but most of them have been taken over by the Bank of England temporarily.
All applications for exchange have to be made on a special form, which has to be approved by the Bank of England before the currency is made available.
The French exchange was remarkably steady during the year. There was no talk of further devaluation of the franc in terms of sterling, and during the 12 months the fluctuations in the rate were only between the limits of 174f. and 177f. The patriotic Frenchman supported his own currency, and the position of the Treasury is now very strong. M. Paul Reynaud, the Finance Minister, has been in office for over a year, and has much improved the financial stability of the country. He stated in May last that the Exchange Equalization Fund had acquired 13,000,000,- 000f, of gold and foreign exchange between October 31, 1938 and January that large additions have since been made to the fund.
French Exchange Stability The British and French Governments have agreed to avoid alteration in the existing official rate of exchange between the two countries, so that it is presumed the rate of 176%. per pound sterling is fixed fòr the duration of the war.
There were one or two flurries in the Dutch exchange during the year owing to internal political troubles and the movement of international capital. The highest quotation for the year was 8.85f, recorded in February, and the lowest was 7f, quoted after the outbreak of war. Sterling in Amsterdam, however, later recovered somewhat, and was quoted 7431. at the end of the year.
The Swiss exchange had to bear the brunt of large international movements of funds during the year, but the Swiss National Bank was equal to the occasion and the exchange did not move abnormally.
In the first part of the year the belga was weak, the rate being at or over the gold export point for somè time, but the Banque Nationale de Belgique was able to counteract the "bears" of belgas, who were squeezed on each occasion.
The Italian exchange, being fixed on a dollar basis, moved with the London-New York rates.
Text read from the printed page and cleaned; old type leaves the occasional error.