BUSINESS IN BRITAIN.

Ashburton Guardian, Volume 51, Issue 292, 23 September 1931, Page 5

BUSINESS IN BRITAIN.

ADJUSTMENT OF INTEREST MADE ASSISTANCE FROM ABROAD. UNITED STATES AND FRANCE. - FUNDS REMAIN IN LONDON. (United Press Association—Copyright; (Received This Day, 11.45 a.m.) LONDON, September 22. The first day since the Government decided on the temporary suspension of the gold standard passed without incident, and today banking business all oyer Brii tain is proceeding on normal lines. I The Stock Exchanges in London and the provincial centres were again closed to-day as a defensive action to prevent further • selling of securities by foreigners. It is understood that the situation will be reviewed by the authorities to-day, when the question 'of the date on which the exchanges will be opened will be considered. Other business proceeded on normal lines, and there was a complete absence of excitement.. Government and business houses are adjusting their interests in view of the changed situation.

Ministers are concentrating on the steps that may be necessary to counteract the adverse effects. It is increasingly clear that it was the troubles of other countries that made it impossible for Britain to remain on the gold standard. The foreign banks were nervous about their position and have been removing money deposited in London and converting it from sterling into their own currency. In this way £43,000,000 was withdrawn in 3J days at the end of last week, and an Act accelerating the suspension of the Gold Standard Act became imperative. ... , Throughout the.day's crisis ready sympathy and assistance were forthcoming 'from France and America, where three-quarters of the available gold supply of the world is held. The Bank of France did not withdraw any of its money deposited m London. The funds remained there intact. . One immediate and noticeable effect of the change was the depreciation of the pound sterling. No less inevitable is some dislocation of foreign trade and finance, the difficulties of which will be adjusted by the countries concerned. In well-informed circles the view is held that one result of the crisis will be a change of opinion among some of the Powers which hitherto have shown no sympathy with the proposal which, for the last 12 months, has been favoured -in England for securing, by means of joint action, following an international conference, a remedy for the : situation caused by the unequal attribution of the world's supply of gold. "There were no official foreign exchange • quotations to-day. . Much satisfaction, is expressed in the newspapers at the calmness with which Britain's decision was received abroad. —British Official Wireless.

NO CATASTROPHIC RESULTS.

VICIOUS CIRCLE AVOIDED. (Received This Day, 11.45 a.m.) LONDON, September 22. In his broadcast address the Chancellor of the Exchequer (Mr Philip Snowden) examined the situation resulting from the passing of the Gold Standard Acjfc. Amendment Bill, which received the Royal' Assent late last night. ' • The consequences, he said, were bound to be disagreeable, and in some ■ways might be serious, but he said they would not be disastrous or catastrophic. It would have been a very different thing a. month or so ago, when we had a huge deficit m our National Budget and when our capacity to sejb our financial house in order was viewed with suspicion. . should have been very as to the consequences then," said Mr Snowden, "for in that case the Government would have sought to borrow to meet current expenditure. TVith confidence destroyed it would! very soon have found it impossible to borrow", and it would have been driven to inflate the currency. In that way a vicious circle of inflation would have been started, which it might have been almost impossible to check. As things are now, there are no longer anv grounds for distrusting the essentia! soundness of our, financial position. One of the consequence of the suspension of gold payment is that those foreigners who still have money on deposit here will be able to take it back only if they wish, to have it back in depreciated pounds, and will therefore suffer loss in terms of their own currency. We deplore that loss. We have done all we can to avert it. We nave not hesitated to impose upon our own people heavy burdens and drastic sacrifices so as to remove any ground for reproach that our own budgetary position contributed to the fall of the pound. "For the people of Britain there is not the slightest anxiety about the money in banks or in savings banks. That was perfectly safe." In particular, Mr Snowden warned the public against any panic in buying arid hoarding commodities. There is no danger of shortage. The Government would take every step to safeguard arid build up our position anew.—British Official Wireless.

THE UNOFFICIAL EXCHANGE.

REMARKABLE ACTIVITY. (Received This Day 11.-50 a.m.) LONDON, September 22. There was remarkable activity in the unofficial street market outside the Stock Exchange, the higher prices of commodities causing the public to buy many industrials. Some brokers did more business in a few hours than they did in a week while the exchange was open. South African gold mining was particularly in demand after the price had been fixed nominally at 99s 7d which was 15s 2d higher than, yesterday. There arrived from South Africa to-

day 240,000 sovereigns and £484,000 in bars for which the owners refused an offer, believing that a better price would be obtainable.

STOCK EXCHANGE TO RE-OPEN.

RESTRICTION ON TRANSFERS

(Received This Day, 8,40 a.m.) LONDON, September 22. The Stock Exchange re-opens to--morrow.

The Treasury orders that until further notice purchases by British nationals of foreign exchange or transfers of funds for acquiring such exchange shall be prohibited, except for normal trade and reasonable travelling purposes. The railway companies are increasing their fares to the Continent in relation to exchange. One travel agency has already increased its fares by 20 per cent.

DEBATE ON FINANCE BILL.

THE GUILLOTINE APPLIED. (Received This Day, 8.40 a.m.) LONDON, September 22, In the House of Commons the guillotine on the* Finance Bill was carried by 283 votes to 216. Sir Samuel Hoare (Secretary of State for India) stated that the Government had decided 1 that the fixed rupee exchange be 18d.

MOSCOW PRESS GLOATING.

"END OF WORLD CAPITALISM."

* (Received This Day, 9.40 a.m.) MOSCOW, September 22. The newspapers gloat oyer Britain's plight as the strongest portent bf the disintegration of world capitalism. They refer specially to the Navy's part in hastening the crisis and predict that the financial catastrophe will envelope the whole world.