The British Government tonight (Saturday) devalued the pound sterling by 14.3 per cent. With the?
The British Government tonight (Saturday) devalued the pound sterling by 14.3 per cent. With the devaluation came an announcement of massive new international credits and increased austerity measures at home to help boost the ailing economy.
A tense crowd waited in Downing Street through the afternoon as the government maintained its silence on the severe crisis that had hit sterling. Then, at 9.30 p.m. GMT came the announcement...the exchange rate of the pound in relation to the dollar was down from 2.80 to 2.40.
The announcement ended days of frantic uncertainty that had often bordered on panic. It brought immediate reaction: Denmark and Ireland announced devaluation of their currencies, in South Africa, New Zealand, Norway, Sweden and other countries emergency cabinet meetings were called. But most governments said they would not have to devalue...most importantly, President Johnson made a statement soon after the London announcement saying that the dollar would not be hit.
As it was brought home to Britons that they faced a tough winter... bank rate at the highest since the outbreak of the first world war, huge cuts in government spending, new restrictions on loans and hire purchase...leaders of industry and the trade unions were summoned the Number 10 Downing Street.
After meeting the Prime Minister, the Chairman of the Confederation of British Industries Mr John Davis spoke to reporters...