PANIC OVER GOLD

Manawatu Standard, Volume LVII, Issue 159, 7 June 1937, Page 7

PANIC OVER GOLD

BRITAIN TAKING STEPS. TO KEEP UP PRICE. STATEMENT AWAITED. (United Press Association —By Electric Telegraph—Copyright.) Received June 7, 9.20 a.m. LONDON, June 6. The political writer in the newspaper The People says: “Mr Neville Chamberlain, Sir John Simon, Mr Montagu Norman (Governor of the Bank of England) and other members of the Cabinet and directors of the Bank of England will meet to-morrow with a v.ew to ending the gold panic. It is expected tnat a statement will follow to the effect that the Government intends to keep up the price, or gold and that arrangements are being made for President Roosevelt' to do me same. The Government believes that such a statement will restore confidence. RUSH TO SELL GOLD. HOARDERS PANIC-STRICKEN. LONDON, June 6. Panic is not too strong a word — madness might be an even more applicable one—with which to describe the state of the gold market in the past week. A few y’ears ago it would have seemed fantastic that the same people who were jealously hoarding gold should also feverishly seek to exchange it for printed paper. l 7 et that is what they are doing now. Panic-stricken lest the great Powers should withdraw support, gold-hoard-ers ruing nearly £i,UOO,OOO worth of gold on to the London market on Friday alone. Four million pounds worth was taken up, the remainder being held over until Saturday. Meanwhile President Roosevelt’s statement that the United States gold policy will not be changed calmed hoarders’ nerves and a number of selling offers was withdrawn. City business men are most critical of British official policy and point out that a clear statement a little while ago would have prevented panic developing.