INFLATION LIKELY

Ashburton Guardian, Volume 53, Issue 272, 29 August 1933, Page 5

INFLATION LIKELY

PRESS OPINION IN LONDON. DISTRUST OF CURRENCIES. {United Press Association—Copyright) LONDON, August 28. A belief that Britain will not much longer be able to resist inflation is growing with the rise in the price of gold. The “Financial News” devoted half a column to discussing the investor’s best policy in the event of inflation. The “Financial Times” declares that confidence in all forms of currency is steadily decreasing. The entire £200,000 worth of bar gold offered on the market on Saturday was taken by Continental buyers, most of whom are hoarding the metal in London. It is estimated that the gold stored in'London safe deposits amounts to £50,000,000, the bulk of which belongs to foreigners, as the Bank of England 'is empowered •' to ..purchase British hoards at the statutory, price, of 84s 9cl an ounce. gome sections of the City expect a general abandonment of;- the gold standard before 1934. Ihe City attaches the greatest significance to the Roosevelt —Norman conversations many persons hoping that they will result in a stabilisation agreement as it is believed that President Roosevelt is disinclined to inflate while Mr Montagu Norman considers a general abandonment of gold extremely dangerous.