BULLION MARKET

Manawatu Standard, Volume LVII, Issue 158, 5 June 1937, Page 9

BULLION MARKET

MUCH SELLING OF GOLD. FEARS OF CUT IN PRICE. FOREIGNERS PANICKY. (United Press Association—By Electric Telegraph.—Copyright.) Received June 5, 10.50 a.m. LONDON, June 4. The enormous sum of £4,250,000 worth of gold, almost double yesterday’s record, was sold on the London bullion market. It was absorbed chiefly by the Equalisation Fund. It was offered mainly by foreign hoarders who are panicky at a possible cut in the gold price. The good effect on the stock markets which the dropping of the defence contribution brought has disappeared through the gold scare.

GOLD PRODUCTION

QUESTION IN THE HOUSE.

(British Official Wireless.) RUGBY, June 3,

Asked in the House of Common! whether in view of the mischief which the increasing surfeit of gold production was causing to commerce, pending its absorption by automatic expansion of international trade, he would confer with the Government of the United-States with the object of offering jointly to help the Chinese Government to establish a gold standard currency, Sir John Simon (Chancellor of the Exchequer) replied that the Chinese Government had not expressed any desire to establish a gold standard, and in the circumstances the suggestion in the question did not appear to be practicable.