MONEY AND GOODS

Gisborne Times, Volume LXXXV, Issue 12912, 14 July 1936, Page 7

MONEY AND GOODS

FRENCH BABY BOND APPEAL SEVERE SLUMP OF FRANC. N.Z. BONDHOLDERS MORE REASSURED. BUT DEALING MARGINS NARROW FIREWORKS IN WHEAT AND COTTON. (U.P.A. hy Elec. Tel. Copyright). LONDON, July 12. An immediate sequel to the French Government’s “baby bond” appeal has been a severo slump in the franc, contrasting,with the optimism of the Govern incut., which stated that the loan had met with a most favorable reception. Reports current in tho City suggest that the first result of tho issue Las been most disappointing. The, capital efflux from France has been renewed. The uncertainties of international politics tvoro responsible for the stock markets marking time. Gilt-edged securities aro sullenly inactive. Sir Austin Harris’ speech at the National Bank meeting is doing much to reassure holders of New Zealand stock. Business is not extensive, hut, the dealing margins have narrowed. The most active markets have been industrials, especially armaments and heavy idnustries. Stool production in tho first six months of 10-3(5 reached a new high level. Speculators are inclined to neglect mines, which aro drearily stagnant. The real fireworks occurred in commodities, especially wheat and cotto-n. Despite tho United States requiring to import 25,000,000 bushels of wheat those who are well-informed consider that there is no foundation for talk of a world shortage of wheat. Cotton imitated wheat, rising to new high levels at Liverpool, amid great excitement. August future are over 7d lor tho first time in seven years, and f*. further improvement in price is considered possible.

WARNING TO MONEY LENDERS. “BABY BOND’" LOAN MUST SUCCEED. OTHERWISE PEOPLE’S FORTUNES WILL BE TAKEN. (U.P.A. by Elec Tel. Copyright) (Received July 13, II p.m.). PARIS, July 13. The Government has prepared rigorous measures to enforce acceptance of the policy of M. Faure. Mir.istnwithout portfolio. Referring to the “Baby Bond” appeal, he said: “If the loan dors nut bring what we hope, we shall mo' id :c the people’s, fortunes.’’ ."Businessmen throughout France were, by telegraph, summoned by the Minister to attend a mooting to discuss the rising of the c-qst of living and will require, to. explain prices increases which threaten to dafoat tho benefits of the new labour legislation. Prosecutions are being launched against pvofiteeers.