DUTCH GUILDER

Ashburton Guardian, Volume 55, Issue 243, 27 July 1935, Page 5

DUTCH GUILDER

FURTHER LOSS OF GOLD. QUEEN TAKES ACTIVE PART. FORMING NEW MINISTRY. (United Press Association—Copyright) (Received This Day, 12.45 p.m.) LONDON, July, 26. The Hague correspondent of “The Times” says that despite the loss of a further £3,000,000 in gold, the guilder fluctuation lias been yery narrow. The Queen’s insistence that M. Aalberse form a Ministry in a few days, on a wide basis, excludes the possibility of a; simple Gatholic-iS'ocialist Cabinet and makes M. Aalberse’s task almost impossible.

It is expected that M. Colijin will be recalled to form a Ministry. The determination to remain on gold is stronger and is not likely to collapse for a few weeks. It is hoped that the crisis by then will be solved. Meanwhile the Netherlands Bank is acting vigorously in accordance with the Queen’s wishes.

WEAKNESS OF THE CURRENCY. INTERVENTION BY BRITAIN. (United Press Association—Copyright) LONDON, July 25. An Amsterdam message says that because the Catholic party refused to support the Government’s economy measures, the guilder is facing a crisis. The Netherlands Bank lost £7,000,000 in gold in a day,. and has raised the bank rate to 5 per cent. The Cabinet is postponing for 24 hours the decision whether it will resign or dissolve Parliament. The city editor of “The Times” says that the weakness in the guilder has spread to other gold currencies, necessitating the intervention of the British Exchange Equalisation Fund. The belief that Holland would abandon the gold standard caused rises in Unilevers, Royal Dutch, and similar international shares.

Early in the month the Dutch bank rate wa9 reduc.ed to per cent., after a reduction to 4 per cent, on June 26.

AWAITING DEVELOPMENTS.

PREMIER CONFERS WITH QUEEN

THE HAGUE, July 25. Though Holland lost a further £3,000,000, gold guilders have a firm market and the Government is disposed to await developments. The Amsterdam correspondent of the “Daily, Telegraph” says that the Premier had a long,, conference with, the Queen who, it is understood, does not desire his resignation.

CABINET TO REMAIN IN OFFICE. INTERESTS OF THE COUNTR Y. THE HAGUE, July 25. The Premier handed Cabinet’s resignation to the Queen, but her Majesty, after considering the position, requested Cabinet to continue in office in the interests of the country. To this the Premier agreed.

THE BANK RATE AGAIN RAISED

AMSTERDAM, July 25,

The bank rate was raised to 6 per cent, to-night. The announcement of the Cabinet decisions was deferred through fear of speculation.