CURRENCY

Hokitika Guardian, 30 March 1935, Page 5

CURRENCY

BELGIAN ACTION

REMAIN ON GOLD STANDARD. (United Press Association—By Electric Telegraph —Copyright.) BRUSSELS, March 28. The. closing of the Belgian bourses lias caused something like a panic. Everyone with ready cash has been seeking to turn it into goods so as to avoid the consequence of the expected fall of the belga. The purchases made include houses, jewels and clothing. The shops have been doing a roaring trade. The newspapers are forbidden to refer to the devaluation of the belga or to the .abandonment of the gold standard.

SHORTAGE OP FOREIGN CREDITS BERLIN, March 28. Owing to the shortage in Germany of foreign currencies the Wool Controller has curtailed the allotments of currency to spinning mills and other wool manufacturers for the period between April I and September 30, by from thirty to fifty per cent, of the amounts up to which they previously had been allowed to buy. The Controller has further restricted the use of wool to twenty per cent, of last year’s quantity. These reductions do not affect, wool barter.

The War Office, owing to there being a shortage of wool, has issued a decree that only small flags, and fewer of them, shall be ordered. (Received this day at 9.25 a.m.) BRUSSELS, March 29.

In the Chamber, Mr Van -Zmland announced Belgium was remaining on the gold standard but proposed to devalue the belga tn a degree not below thirty per cent. The obligation of the National Bank to exchange gold for banknotes will bo suspended. Government proposes to use all means in its power to hasten the international agreement by which the princinal currencies of the world will agon he stabilised on gold. Pending such agreement and the renttaehnrent of the belga to gold, the Government will fix the external value of the belga, and maintain it bv means of equalisation funds. A later message states the gold reserves of the National Bank will be devalued provisionally at twenty-five per cent, below the present gold party.