GOLD PANIC IN EUROPE

Press, Volume LXXIV, Issue 22478, 12 August 1938, Page 11

GOLD PANIC IN EUROPE

Reported Alarm In France APPREHENSION SPREADS TO GERMANY (d«tm) nisi iißociiTio*—ooFtwoar,) (Received August 11, 2 p.m.) LONDON, August 10. ' The scramble for gold continues unabated. French business men are alarmed j at the sudden return of the Prime j Minister (M. Daladier) from the, Mediterranean and have sold francs j heavily; while many in London are inclined to the view that it is not merely nasal catarrh that has caused Mr Chamberlain to interrupt his holiday. Bulk orders for gold have come from the Continent, but a novel development is the volume of purchases on behalf of America, South America, and the Far East. j M. Daladier, in a statement to the j French press, declared that France s j financial position was satisfactory.. Deposits at present were exceeding withdrawals at the Savings Bank's, contrary to the normal holiday expectations. M. Daladier denied any impending revision of the tripartite agreement. , , . The Berlin correspondent of ihe Times” reports that apprehension is spreading to Germany. Prices on the Berlin Block Exchange have declined by an average of five points, one of the sharpest falls since the Nazis seized power. . .. ■ Company reports indicate the presence of all the classical accompaniments to the onslaught of a depression, and complain that because of rising costs the expansion of profits has not kept pace with the expansion of sales. Wages, however, have kept low unlike the cost of capital. The continuance of low wages may yet delay the break in German industrial activity. A later message states that purchases of gold are on a smaller scale, providing evidence that the market is suffering from indigestion. The effects of political fears, however, are spreading to stock markets, where most issues are marked down sharply. ____________