Belgian Cabinet Resigns

Manawatu Times, Volume 60, Issue 67, 21 March 1935, Page 7

Belgian Cabinet Resigns

Maintaining the Stability of the Belga OPPOSITION’S HOSTILITY TO MEASURES United Press Association. —By Electric Telegraph.—Copyright. Received Wednesday, 7 pan. BRUSSELS, March 20. The Government has resigned owing to the Opposition’s campaign against the Government measures to safeguard the belga. M. Thcunis, in announcing the resignation, declared that the Chamber s co-operation was essential to maintain the stability of the belga, which the Opposition’s systematically unjust campaign had endangered. An official of ' the National Bank, ■which controls all gold dealings, declares that the gold standard will not be abandoned, since the entire Eight Wing, with two exceptions, also the Left Wing in the Senate, has decided to maintain it. Tho new Cabinet is likely to be a kind of National Government, comprised of Catholics, Liberals and Socialists, which control 17(5 seats in the Chamber. Crumbling of Gold. Bloc ? GOLD CURRENCIES BREAK •SHARPLY IN NEW YORK Received Wednesday, 7 p.m. NEW YORK, March 19. A belief that the resignation of the Belgian Cabinet signified the forcing of Belgium oil' gold and the crumbling of the gold blpc shook the foreign exchange market. The prices of the belga and all gold currencies brokj sharply, while sterling jumped ti cents to 4754. The dollar rose to 100.66 cents against the French franc, which fell more than three points to 6.59 cents, or below the gold export level. The belga dropped 16 points, and the Dutch guilder 1-3 of a cent. The Swiss franc also weakened. Holland Protecting the Guilder RIGID ECONOMIES ANNOUNCED Received Wednesday, 7 p.m. THE HAGUE, March 19. Tn order to protect the guilder, the Dutch Government announces rigid economies and a Budget saving of £5,500,000. There is general uneasiness owing to the resignation of the Belgian Government and the flight to sterling on the Bourse, coupled with the sharp fall of the belga. Shock to London Foreign Exchange Market RUSH TO SELL BELGAS ' Received Wednesday, 10 p.m. LONDON, March 20. The Belgian Cabinet’s resignation came as a shock to the London foreign exchange market, where week-end news had created an impression that the belga was saved. The immediate effect was a rush to sell beigas and other gold currencies against sterling. This reduced the market to chaos. The final' sterling exchange on Brussels was 20.581, a net movement of .301 in favour of London.