and as U.S. debtors were desperately trying to meet their obligations to pay in sterling, the dollar-pound exchange rate soared as high as $6.75, which was far above the average of $4.8665 (Parley 957). The premium on sterling made exports of gold highly profitable to use which caused an explosion of gold flowing out of the US. Under the pressure of heavy foreign selling, stock prices fell sharply in New York. The banking and financial systems in the United States seemed on the verge of collapse (Crabbe 424). On July 31, the New York Stock Exchange joined with the world's other major exchanges and closed its doors. This eased pressure on the gold standard by preventing the export of gold arising from foreign sales of U.S. corporate securities. In August, the unsafe shipping conditions and the unavailability of insurance slowed gold exports even further. Although the export sector was in mayhem and with $500 million in short-term debts outstanding due soon
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