INFLATION TIDE

Dominion, Volume 26, Issue 286, 29 August 1933, Page 9

INFLATION TIDE

Rising Price of Gold LONDON’S ANXIETY Foreigners Hoarding Metal ROOSEVELT-NORMAN TALK Hopes for Stabilisation Agreement By Telegraph.—Press Assn.—Copyright. (Received August 28, 10.45 p.m.) , London, August 28. A belief that Britain will not much longer be able to resist inflation is growing with the rise in the price of gold. The "Financial News" has devoted half a column in discussing the investor's best policy in the event of inflation. The “Financial Times” declares that confidence ,in all forms of currency is steadily decreasing. ' . The entire £200,000 worth of bar gold ■Offered on the market on Saturday was taken by Continental buyers, most of whom are hoarding the metal in London. It is estimated that the gold stored in London safe deposits amounts to £50,000,000, the bulk of which belongs to foreigners. .. As the Bank of England is empowered to purchase British hoards at the statutory price of 84/9 an ounce, some sections of the city expect a general abandonment of the gold standard before 1934. , , The city attaches the greatest significance to th.o conversations between President Roosevelt and Mr. Montagu Norman, governor of the Bank of England. Many hope the conversations will result in a stabilisation agreement, as It is believed President Roosevelt is - disinclined to inflate, while Mr. Norman considers a general abandonment of gold extremely dangerous. dollar and pound Race in Depreciation PERTURBATION IN EUROPE London, August 27. Referring to the currency confusion, the “Dally Telegraph"'says that the pound and dollar last week were each left to find its own level, the Exchange Equalisation Fund having apparently suspended its activities in holding sterling. That was the only possible explanation for the sharp advance on Saturday in the franc, mark, and other gold currencies. They have risen steadily since the Economic Conference, and already there is widespread apprehension in Europe as to what this portends. 1 ,The allegiance of France, . Germany, Holland, -and Switzerland to the gold standard will be tested by the race in depreciation between the pound and \ the dollar. ' Unless the movement is checked, currency questions loom ahead to disturb Europe.