GOLD PROBLEM

Grey River Argus, 5 October 1931, Page 5

GOLD PROBLEM

FURTHER LOSSES By Germany (Aus. & N.Z. Cable Assn.) (Received October 4 at 5.5 pan.) BERLIN, October 3. There has been a sharp shrinkage in the gold holding of Germany. The withdrawal of foreign currency to America and to Holland, together amounting to eleven and. three-quarter millions sterling for the week, has reduced the German currency gold coverage from forty per cent, to thirtyone per cent., and has caused the Government to decree that all holdings of toreign currencies or claims thereto above ten pounds sterling must be placed at the disposal of the Reichsbank, as a means of stemming the outflow, failing which the discount rate will be raised. India Losing Gold EMBARGO PROPOSED. CALCUTTA, October 4. Gold is being exported from India to England, America and Holland on an abnormal scale. To-day’s steamer is carrying gold to the value of a million and a-half sterling. This, has caused alarm in mercantile circles. Indian merchants are calling on the Government to levy an embargo on the export of gold. Canada’s Decision TO STAY ON GOLD STANDARD. (Received October 4 at 5.5 p.m.) OTTAWA, October 3. Following on a five hour session of the Canadian Cabinet, Mr Bennett, Prime Minister, announced that Canada will remain on the gold standard. Canada has not altered the position taken up by her when the announcement was made that England had departed from the gold standard. rhe Prime Minister added: “Nor do we contemplate departing from the gold standard. We have applied, and not in vain, to Canadians to conserve our gold supply to meet whatever strain may be placed upon our resources by reason of our foreign commitments which are payable in gold, and will be honoured accordingly. The drop in the Canadian dollar in the United States is injuring business so drastically in the United States border cities that the leading firms and hotels are advertising in Canadian papers that they will accept Canadian money at par. German Wage Cuts BRITISH COAL CHEAPER NOW. BERLIN, October 3. Industrial economies are being extended in Germany. These include a cut of 134 per cent, in pay for the Hamburg watersiders, while two of the Ruhr coal mines have discharged 2200 men, owing to an inability to compete with the now cheaper British coal.