"PANIC" OR "MADNESS"

Auckland Star, Volume LXVIII, Issue 133, 7 June 1937, Page 7

"PANIC" OR "MADNESS"

£7,000,000 of Gold Thrown on Market. HOARDERS DISGORGE. (Received 2 p.m.) LOXDOX, June 6. '"Panic" is not too strong a word— madness" might be even more applicable—to describe the state of the gold market in the past week. A few years ago it would have seemed fantastic that the same people who were jealously hoarding gold should feverishly seek to exchange it for printed paper. \et that is what they are doing. Panic-stricken lest the great Powers should withdraw their support from gold, hoarders flun<r nearly £7,000.000 worth of gold on to the Loudon market on Friday alone. Of that £4,000,000 worth was taken up, the remainder being held over until yesterday. ° President Roosevelt's statement that the gold policy of tlft- United States is not being changed calmed the nerves of sellers and a number of selling offers were withdrawn. The City is very critical of British official policy. It is pointed out that a clear statement a little while ago would have prevented the panic developing. The political writer of the newspaper, "The People," says Mr. Neville Chamberlain, Sir John Simon, Air. Montagu Norman, along with other Cabinet Ministers and governors of the Bank of England, will meet to-morrow with a view to ending tHe gold panic. It is expected that a statement will follow to the effect that the Government intends to keep up the price of gold and that arrangements have been made with President Roosevelt to do the same. The Government believes such a statement will restore confidence.