"UNDER FIRE."

Auckland Star, Volume LXVII, Issue 104, 4 May 1936, Page 4

"UNDER FIRE."

FEAR OF THE FRANC. STOCK EXCHANGE NERVOUS. OTHER CURRENCIES WEAK. 1 (Received 10 a.m.) | LONDON, May 3. j The city is now wondering, whether the franc will much longer withstand the j attacks of heavy selling of all securities, especially of Governments. From the Bank of France the flight of capital is so marked that French financial circlets consider , restrictions thereon probable. • Swiss and German currencies are also under fire. llie former unaccountably •slumped during the mid-week, recovering at the week-end, as the Swiss financial situation is improving. The Budget lias balanced, and selling is probably fine to operators tearing that if the French iranc collapsed the Swiss would follow. Graver fears are entertained in regard to Reichsmarks, which are onlv fictionally on gold currency. General Goering's appointment as arbiter of the foreign exchange seems to make devaluation inevitable. _ I'he city is anxiously watching the development of relations between General Goering and Dr. Schaclit, who are known to differ on many points. If Dr. Schaclit is set aside it will gravely undermine the city s confidence in Germany.

Stocks Are Weak. llie stock markets which weathered the Budget are unable to withstand the combined effects of the international situation and the slump in Wall Street. Foreign bonds are especially weak, as investors are only beginning to realise the full implications of Central European uncertainties. Rubber Quiet. Rubber shares are weaker on the committee's unexpected quota decision aimed at speculators. The committee desires a stable market. Gold Shares Firm. Gold shares are immune from the general weakness. Kaffirs sharply advanced. Wool Sale Prospects. Responsible traders consider that iittlc or no change is likely at the wool sales. If any, it may be in sellers' favour. I hey base their view on the belief that although stocks of many firms are low there is not yet a general shortage. The small quantities available should, however, maintain the price at March levels. Commodities Dull. Commodities generally are dull for the same reasons as the stock markets. Butter is irregular, and fluctuations are likely to continue. Apples are meeting lees American competition, but there are considerable quantities of South African of excellent quality. Dominion's Credit High. Financial papers commend the Now Zealand conversion, pointing out that the credit of the Dominion is deservedly high.