FINANCIAL PANIC

Hawke's Bay Tribune, Volume XXVI, Issue 146, 5 June 1936, Page 5

FINANCIAL PANIC

Flight of Gold From France STOCKS DEPRESSED B.v Telegraph--Press Assn.—Copyright LONDON. Juno 4. Nervousness regarding Continental gold currencies has intensified, largely owing to deterioration of the French situation and increasing strikes on the eve of the Socialists assuming government. Tho franc fell to 76.25 in relation to sterling, the lowest sine* August, 1931. The British Equalisa tioti Fund is reported to have expended £1,000.000 to prevent depreciation, although it operated only intermittently. The American fund also operated to assist the dollar. The French Bourse became panicstricken and stocks are depressed. Bank of France shares fell 200 francs. The flight of capital to Belgium and America has recommenced, £3,000,000 worth of gold was rushed in motorcars to catch the Aquitania for America.

“The Times” Paris correspondent says: "The whole of the gold bloc is losing ground. It is expected that M. Blum, the new Premier, will inaugurate stringent currency restrictions but will reject devaluation.”

Franco lost £5,000,000 in gold in a week.

THE GUILDER SINKING

Netherlands Losses

AMSTERDAM, June 4

The pressure on the guilder was not alleviated by a second increase in the bank rate. The Netherlands bank lost £6,500,000 in gold last week out of £100,000,000.

UNREST IN SPAIN

Vanguard in Anti-Fascist Struggle

STRIKERS’ DEMANDS

MADRID, June 4.

Forty -thousand workers in the building trade, also grave-diggers, struck despite the fact that there are only sufficient graves dug for two days requirements. At Barcelona the railway strike was settled, but dustmen and pastrycooks joined the workless. Soldiers are distributing flour to bakeries. Flour mill workers have announced that deliveries will be permitted only to charitable institutions. A general strike has boon declared at Santander owing to the wounding of Senor Lucianno Malumbra, a Socialist editor; his assailant subsequently committed suicido.

“The Times’’ Madrid correspondent says: “Spanish workers recall that they are the vanguard in an antiFascist struggle. Spaniards were seizing factories before the Frenchmen adopted the idea, therefore they art determined not to be left behind. In the Lcnarroya mines, Andalusia, strikers seized the engineers at hostages, but the French Embassy’s intervention resulted in their release. The miners have halved their output. Servant girls at Mulata, Andalusia, struck for a minimum wage of 25/- a month with a weekly holiday exclusive of Sunday.