WAR FINANCE.

Auckland Star, Volume LXX, Issue 203, 29 August 1939, Page 9

WAR FINANCE.

BRITISH MEASURE.

Mobilising Huge Assets In

United States.

BAN ON FOREIGN STOCKS

United Press Association.—Copyright,

(Received 10.30 a.m.)

LOXDOX, August 28

The Treasury has ordered restrictions on securities which may be marketed outside Britain, states an Independent Cable Service message.

Business on the Stock Exchange, states a Press Association message, dwindled further on. the ban on dealings in foreign stocks.

A Washington message states that the British Government ban on trading in foreign securities is interpreted us the beginning of mobilisation of the huge British assets in the United States to iinance the purchase of war materials in America. It is anticipated that in the event of war the British Government would establish an agency to liquidate .securities, thus avoiding dumping and depressing the value.

British and French assets in the United States arc estimated to exceed 3,000,000,000 dollars, of which 2,62.5,000,000 could be easily liquidated. British holdings are estimated at over 2,000,000,000 dollars. Canadians also have sizeable investments.

What use of the investments will be made depends on President Roosevelt's steps under the Neutrality Act.

The Assistant Secretary for War, Mr. Louis Johnson, to-day called the latter a "discrimination act," and declared that the arms embargo was equivalent to presenting Germany with an Atlantic fleet.

SOVIET GOVERNMENT. Agenda For Parliament Agreed Upon. PACT THIRD ON LIST. (Received 12 noon.) LONDON, August 28. The Supreme Soviet Council met briefly and arranged a short session with the Council of Nationalities to-night, says a Moscow report. It has postponed ratification of the Russo-German Pact. The Moscow correspondent of the British United Press says that at a joint meeting of the Supreme Council and the Soviet Union Council of Nationalities to-night it was revealed that neither the Russian-German non-aggression pact, nor military service law would be discussed pending developments in the European situation.

The Telegraph Exchange Agency Moscow correspondent says the Lower House at a meeting this afternoon agreed only on the order of the agenda for Parliament to-night. The House put agricultural taxation first, universal military service second, and the GermanSoviet Pact third. The pact may not be reached until Thursday or Friday. FOOD RATIONING. Strict Regulations In Force In Germany. APPEAL FOR CZECH LOYALTY. (Received 11 a.m.) LONDON, August 28. Berlin restaurants in future will have restricted' menus, not exceeding 10 dishes, says a message from the German capital. Bread, flour, fruit and vegetables are excluded from the rationing system. Long queues of anxious housewives awaited the opening of shops in Munich at 7 a.m., when rationing came into operation. Purchases were so heavy that most shops were compelled to close %t 8 a.m. A special permit is needed to get shoes resoled. The German railways are now cleared for "important traffic." The Berlin correspondent of the Associated Press of Great Britain says that meat is limited to 25 ounces and sugar to 10 ounces per person per week. Rations of dairy products and coffee are fcwo ounces each a day and milk half a pint. The military authorities are halting civilian motor cyclists and commandeering their machines for reservists. A dispatch from Prague says the Czech National party has issued a manifesto appealing to Bohemians and Moravians to remain loyal to Germany and recalling Polish hostility in last year's crisis.