FINANCIAL CRISIS.

Manawatu Standard, Volume XLIII, Issue 445, 10 July 1922, Page 5

FINANCIAL CRISIS.

FEARS OF THE AUSTRIANS.

APPEAL MADE FOR HELP.

POSSIBILITIES OF CONFLICT

By Electric Telegraph—Copyright. Received July 10, 8.50 a.m. LONDON, July 8,

An alarming story regarding the state of Austria is contained in a note addressed by tho Austrian Government to Reparations Commission seeking relief from liens on certain revenues possessed by creditor Nations.

Tho note stales that unless relief is allowed immediately a limmcial catastrophe will be inevitable. A crisis was never so acute. _ It is far more menacing than any preceding one. The Austrian Crown has shrunk trom 50.00 C to the £1 to ICO,OCO to the £l, mid soon will ho utterly valueless and refused by every bunk in the world. This would lead not only to a financial crisis, lint to a.social upheaval and a political collapse. If the neighbouring conntrios send troops to restore order, international jealousies and the possibility ol a conflict will be aroused. —Times. THE EFFECT IN FRANCE. STATE Ol- CONSTERNATION. Received July 10, 8.50 a.m. PARIS, July 8. Tho Note from Austria lias greatly impressed the French and has thrown the Reparations Commission into a state akin to consternation.—A, and N.Z, cable. DEPRECIATION OF MARK, WILD PANIC IN BERLIN, BERLIN, July 8. There was a wild panic on the Bourse when ihe mark touched 2600, the chief selling being by foreign holders who are fearful of political turmoil, the of which official circles in Germany consider to he grossly exaggerated. ’.I he public made a rush to buy goods in order to get rid of the mark at any coat, and customers who could not get whai they wanted look whatever tho shops had, The Government has given up the attempt to steady the mark, which hanks are shovelling on to the market at any price. Every German with money is trying to get his capital invested abroad. The impression is that the Government is allowing the mark to reach the level of Austrian currency, when it will toll llic Allies she is bankrupt and cannot pay the reparations.—A. and N.Z. cable. LONDON, July 8. Tlie mark reached 2400 and closed at 2350.—A. and N.Z. cable. PROTECTING SPANISH INDUSTRY. LONDON, July 7. Owing to Gorman competition resulting from depreciation of the mark, the Spanish Government proposes to increase import duties on lead, ores and concentrates to protect the local smelting industry .—A. and N.Z. cable. REPARATION PAYMENTS', GERMAN PROPOSAL. PARIS, July 3. Information received in Allied circles show that the German Government proposes to ask for the total remission _ of gold reparation payment? for 1923-24, giving in exchange for this concession increased payments in kind. The Petit Parisien points out that instead of receiving 1450 millions of gold marks, the Allies would get about two thousand million in kind. Two years is the lime mentioned for the payments.—A. and N.Z. cable. BRITISH STOCK EXCHANGE. ACTIVITY CHECKED. Received July IC, 8.5 a.m, ‘LONDON, July 8. Tlie slump in the German mark, which caused a smaller decline in the French and Belgian francs, coupled with the events in Ireland, lias checked the general activity on the Stock Exchange, but high-class investment securities have been wonderfully maintained, the chief explanation being the idea that, (he chaotic conditions may prolong the stagnation of trade and the cheapness of the money. The money market is already freely discussing tlie prospects of a further reduction in the bank rate, but it is suggested that such a reduction would bo likely to have a less pronounced effect upon securities than the previous declines. Tho present state of the Berlin exchange has virtually brought about a standstill of any attempts by Germany to meet the cash payments of accounts and _ reparations, affecting her similarly regarding external payments which must he made tor raw materials. —A. and N.Z. cable. NEW YORK VALUES. STRENGTHENED DURING PAST WEEK. Received July 10, 8.5 a.m. LONDON, July 8. An encouraging feature in the exchange position lies in tlie fact that Now York values have strengthened during tlie week, this being probably duo to renewed expectation of developments regarding a British loan in America. In this regard the city lias evinced the greatest, interest in the withdrawal of half a million in gold from ihe Bank of England. A similar decline has occurred in the holding of gold by the currency department: against ihe issue of currency notes. Thus a million has been withdrawn, and the money market concludes that this has been done for shipment to the United States as payment of interest on the loan, tlie first instalment of which is due in October.

The Spectator points out that among the fnfhrwvees which have produced the recent improvement in gilt-edged securities is that insufficient attention was paid to national accounts, which is regarded as encouraging, both owing to the. unexpectedly large revenue and the shrinkage in the expenditure. —A. and N.Z. cable.