CREDIT CONDITIONS

Manawatu Standard, Volume LVII, Issue 160, 8 June 1937, Page 7

CREDIT CONDITIONS

“NOTHING UNHEALTHY.” QUESTIONS IN HOUSE. INFLOW OF GOLD. (United Press Association—By Electric Telegraph.—Copyright.) (British Official Wireless.) Deceived June 8, 11-55 a.m. RUGBI', June 7. The Chancellor of the Exchequer (Sir John Simon) was asked in the House of Commons whether “he will continue to borrow in order to buy and neutralise gold so as to prevent creun inflation, or whether he would propose a revision ot the tripartue agreement before the inflow of unwanted gold reached uncontrollable dimensions?' 1 Col. Colville replied : “There is no indication ot any unhealthy credit conditions at the present time and no such conditions will be allowed to develop. The Chancellor of the Exchequer has not the intention of departing from the tripartite agreement." Another member asked it there had been negotiations with the United .States on a common policy regarding gold purchases, Colonel Colville replying: “There has been no occasion ior such negotiations. The arrangements under the tripartite monetary agreement, in regard to which there is close contact between the two Treasuries, is working to full satisfaction of the Governments concerned.” NO CHANGE INTENDED. PRESIDENT NOT WORRIED. Received June 8, 9.50 a.m. , NEW YORK, June 7. President Roosevelt informed the Press conference to-day that there would be no change in his gold policy. The United States knew nothing of agreements for the reduction of the price " 35 dollars an ounce. There was no reason to worry much' about the gold situation, he sa.d.

PRICE OF GOLD

RATES OF EXCHANGE

Received June 8, 11.5 a.m. LONDON, June 7. The price of gold is now £7 Os Bjd per fine ounce. The dollar exchange rate on New York is 4.93 5-16 and the franc rate (Paris-London) 110 23-32.

LONDON IMPROVEMENT

LONDON, June 7

The gold situation lias improved. The only offerings on the market amounted to £745,000, which f “'Milieu tals absorbed. The Exchange Fund is not operating. The stock markets are more cheerful. Greater interest in gold shares followed President Eoosovelt’s announcement while the upward tendency in Wall Street strengthened industrials. Gilt-edged were quiet and foreign bonds steady. 'SATURDAY’S TURNOVER. (British Official Wireless.) RUGBY, Juno b. There was again an exceptionally large turnover at yesterday’s gold dealings, when about 4C5 bars, of an approximate value of £1,300,000, were disposed of at £7 0s 31d a fine ounce; During the week £11,874,001) wortn has been sold at official daily “fixings.” The Times says that the major part of the gold snid last week is under stood to have been bought for the exchange equalisation account. Nearly all of it is believed to have been dehoarded gold from stocks accumulated in London as a protection from possible Continental currency depreciation. Only a small part represents the regular” output of newly-mined gold..