Final Stampede From Gold Feared

Manawatu Times, Volume LIV, Issue 7196, 30 June 1933, Page 7

Final Stampede From Gold Feared

No Standard Left to Measure Values United Press Assn.—By Electric Telegraph.—Copyright. Received Friday, 2 a.m[ NEW YORK, June 29. The sensational market rises in the past few days suffered a reversal to-day as heavy profit-taking among commodity speculators counteracted the rise. There was a further cheapening of the dollar against foreign currencies. The sterling touched 4.431, the highest since England abandoned gold in October, 1931, and closed at 4,375. Reports that France and her Allies are likely soon tc abandon gold with a possible dropping of the standard by other gold countries has aroused speculation in financial circles with the possibility of the unprecedented situation that no country in the world will be on gold. Thus there will be no standard to measure values by with its undoubted disturbing effect on world trade and the external investment of the various countries. Shadow Over Conference FRANCE FEARS INTERNATIONAL PANIC. Received Friday, 2 a.m. LONDON, June 29. The slide of the dollar continues to cast a shadow on the Economic Conference. There has been a revival of the story that the gold countries will demand that Mr. Ramsay MacDonald agree to some measure of temporary stabilisation. Indeed French circles sense a condition of international psychology which forebodes a panic and think it is all too bad that gold is pouring into England for sanctuary and to disturbance of world equilibrium.

Back to Gold Standard AIM OF INTERNATIONAL BANK. THE FUNCTION OF GOLD. LONDON, June 28. The Monetary Sub-Commission adopted the amendments to the Pittman resolution by Mr L. Fraser (United States) President of the Bank of International Settlements, stating:— “Gold is required not for internal circulation, but as a reserve against Central Bank liabilities and primarily to meet external demands for payment caused by tho disequilibrium on the foreign account. “Further, in order to improve the working of tho future gold standard, greater elasticity should be given to the Central Bank’s legal cover by a reduction of the gold cover to 25 per cent.’’ Mr Fraser said he wished to expedite a return to the gold standard, and to remedy the past errors of the working thereof. . Quota Gone Mad ITALY’S WHEAT RESTRICTION Received Thursday, 9.50 p.m, ROME, June 29. A decree ordains that only one per cent, of foreign wheat will be permitted to bo milled in Italy after July 17.

“ Dare Not ! ” DISAPPOINTMENT SENSED IN MACDONALD’S DICTUM LONDON, June 28. When Mr. MacDonald declaimed at the Pilgrims Club dinner “we dare not fail,” the critics sensed a tinge of disappointment that the World Conference had as yet achieved nothing concrete and began wondering what tonight’s meeting of the Bureau would produce to give a fillip to the proceedings. The irresistible impression remains that the main deadweight on progress is the American determination to condition everything to her internal efforts at reorganisation. From the French angle still come predictions that the Conference is already & failure. France is alarmed at the prospect that Holland may be forced off the gold, in which event M. Bonnet is credited with saying: “There will bo a real crisis, demanding a fresh attempt at stabilisation.” In this regard special interest is attached to Mr. Fraser’s gold standard policy. Esthonia Off Gold

Received Thursday, 9.50 p.m. RIGA, June 29. Esthonia has abandoned the gold standard.