FLOW OF GOLD

Grey River Argus, 28 July 1931, Page 4

FLOW OF GOLD

OUT OF ENGLAND Stemmed in France BY PURCHASE OF CREDITS — (Aus. & N.Z. Cable Assn.) (Received July 27, a t 9.30 p m.) PARIS, July 27. Britain’s succes s in stemming the flow of gold from the Bank of England, ha s excited the admiration of .French financiers, who admit that the .recent alarm, st reports regarding the ' financial conditions of Britain are I groundless. I Since his return, the Primp Minister, Mr Laval, hfcs been emphasising lus belief .In Britain’s economic soundness, thus counteracting the efforts of the sensational press. In order to assist in stemming the (flow of gold to France, agents of the 'Bank of England brought ‘up French credits to the extent of six millions, sterling. This, combined with the rise of one per cent- in the bank Yate, had the desired effect.- though Saturday’s outflow of gold t 0 France would have been larger than ever, but for an eleventh-hour cancellation by the Bank of France. French Capitalists FEARS FOR BRITISH STABILITY. i (Aus. & N.Z. Cable Assn.) LONDON, July 27. The ‘‘Daily Telegraph’s” Paris correspondent states: “The abnormal exodus of gold from England to France was not initiated, or aspired or controlled by t* 11 © French Government. but it was of political origin,, being due to the baseless fears of certain French that the eco-. nomic situat/iom in Britain makes desirable the .conversion of the FiMnch in London into gold in the vaults of the Bank of Fraaice. The British, trade figures, the budget deficit, the unemployment, the troubles in Indiaj and the financial embarrassments in Australia were ail emphasised. To-day sees the turn of the tide. ENGLAND’S ECONOMIC HURDLES WELLINGTON. July 27. Some surprise was occasioned in the I House dT Representatives when Mr Vincent Ward, speaking in the de- | bate oil the Imperial Conference, put ’forward the suggestion that the prej sent economic depression might last i for another 70 years. Mr Ward had ' been speaking of the tremendous bur- ' den of war debts and remarked that an authority he had been reading had claimed that the present depression ’must last for another 70 years. Mr T. D. Burnett (Reform. Temuka) —Seventy Mr Ward: Yea, until the war debts are paid off. Very few people realised just how immense the war debts really were, he said. He quoted figures showing I that the balance of the funded indebtedness of Europe to the United States amounted on November 30, 1930, to I £2.256,000.000. Britain was not only I weighed down by war debts and beset ! with a tremendous unemployment pro--1 blem, but was meeting with competition in the manufacturing world from countries which previously bought her manufactured goods. Mr Ward said the people of England were undergoing a change of opinion. He believed they wanted protection.