Outflow of Gold

Hawke's Bay Tribune, Volume XXVI, Issue 121, 6 May 1936, Page 7

Outflow of Gold

FRANCE NERVOUS Planes Take Consignments to London FEAR OF THE SOCIALISTS (By Telegraph—Press Ann., Copyright.) (Beceived 6, 9.55 a.m.) LONDON, May 5 Every air-liner from Paris is heavily laden with gold. The out* flow is due to French nervousness at the advent of the Socialist regime. It is estimated that £2,000,000 arrived by air to-day in addition to large soa*borne consignments. Customs officers have noticed that private citizens in the last few days have been bringing personal trinkets and family heir looms. The French Cabinet eat for a lengthy period and listened to a long zpeecu by M. Flandin on the foreign situation and another by M. Regnier dealing with finance. M. Regnier subsequently stated V-. ' no special measures to aafeguard the franc, such as control of foreign exchanges or an embargo on gold, were necessary before the resignation of Cabinet, which is expected to ta'.o place on June 1, when the new Chamber of Deputies operates. The Paris correspondent of “The Times” says: “The Front Populaire’s programme, although' generally moderate, includes items which may lead to serious trouble if pressed unskilfully. Among these is the dissolution and dis armament of the Croix de Feu, which its followers declare will lead to civil war, as the Croix de Feu claims to have 800,000 followers, armed and organised, who will resist dissolution. Another is in the reform of the Bank of France, which is expected to be placed under public control. This already is unsettling both large and small capitalists, causing fears of an embargo on the export of capital, which it is believed will lead to devaluation. “It is hoped that the Opposition will give the Front Populaire a fair chance to govern and thereby prevent too drastic measures with resultant panic.” The “Daily Telegraph’s” Paris correspondent says that M. Thorez declared: “Now we will be able to make a levy on large fortunes.” The final state of the parties is: Left 381; Kight 237. ,