the capitulist press, the world cur rency markets were hit by a new hurricane, less than four months after the previous crisis. Exchange rates were blown in all directions, with sterling being devalued by 2 per cent in as many hours and the dollar by bot much less. Perhaps more important, the major banks dropped anchor and withdrew from the market altogether on the grounds that it was. in the words of the Swiss Central Bank, 'out of control' The ten top Central Bankers spent their Zurich weekend ostensibly fighting for exchange-rate stability. but in reality deciding if a basis for world trade couki be maintained in the face of falling confidence in curThe struggle to end the talks between the unions and the Tory Government before the TUC Congress in Septemher received a setback this week. At the annual conference of the National Union of Railwaymen, a motion opposing 'any discussions between the TUC and the government' was lost, by the small margin of 34 votes to 43. Meanwhile, at the T&C conference in Brighton, Jack Jones was allowed to carry on talking by a much wider margin uf 2 to 1 The other two burcaucrats in the TUC team, All Allen of USDAW and David Basnect of the GMWU, particular.
They achieved nothing heyond reaffirming their words during the March crisis that Central Banks could intervene to stabilise exchange rates. But it remains to beseen whether the US will do this, since the US Treasury (not represented at the Zurich talks) is set against intervention. In any case, support for the dollar may merely encourage dollar holders to get rid of their boldings as fast as pos sible while the rate is artificially held up. So this leaves open the possibility of a renewed and worse downward slide in the near future. Re serves can even out exchange-rate fluctuations in the short term, but are powerless in the long run aguinst a collapse of confidence.