STATE OF PERPLEXITY

Northern Advocate, 5 February 1934, Page 9

STATE OF PERPLEXITY

LONDON FINANCIERS TWO QUESTIONS UNANSWERED (Received 0 a.m.) LONDON, February 3. The gold policy of the United States is puzzling financiers in London. Nobody seems to be able to say what the result will bo. *

As tlio “Daily Telegraph” says: “There arc only two questions that npn-p in New York or London ean answer. The first is; ‘How long will President Roosevelt be content to draw gold to America ? ’ Clearly he does not want it, and to take gold to America is to take coals to. Newcastle. “The other question is whether the American rumours of imminent conversations between .the London and Washington monetary authorities hove any truth? If so, whether there is any chance of a temporary agreement on that point. London opinion is sharply divided.” UP WITH A BOUND SALES OF SOVEREIGNS BAR GOLD FOR AMERICA (Received 9 a.m.) LONDON, February 3. Two Royal Dutch air liners conveyed £1,000,000 of bar gold from Amsterdam to Southampton on route to America. The weight was four tons. A Hatton Garden merchant received 4000 sovereigns today, in addition to 10,000 he lias received in the past two days. A loading firm of bullion refiners, states that sales of sovereigns have risen with a bound in the past two days, and a further increase is anticipated. However, it does not believe a sufficient number of sovereigns will be left to allow another rush on the same scale as that of 1932. Interest on the Stock Exchange in the past few days has been mainly centred on the gold-mining section, which, under the influence of the meteoric rise in the price of gold, has been enjoying another boom, especially Kaffirs, some of which has risen phenomenally. Australian gold mining issues have benefited considerably. BELIEF OF HUMAN NEEDS COUNTERACTING SCHEMES (Received 9 a.m.) WASHINGTON, February 3. In an address to State directors of the National Emergency Council, President Roosevelt said: “Be hardboiled if you find any little individual trying to take political advantage out of measures for the relief of human needs.’ 7 STABILISED CURRENCY. PARLEY WITH BRITAIN. OFFICIAL INDICATION. (Received 9 a.m.) NEW YORK, February 3. The Washington correspondent of the “Now York Times” says that an early discussion with Britain, on currency stabilisation was authoritatively indicated today. , Official conversations arc expected to begin as soon as the first effects of the devaluation of the dollar have been assessed. The United States Government is rei ported as desiring, for tost purposes, a ratio of about five to one between Hie pound and the dollar, with a further adjustment to bo made after the effect on the internal economic conditions in that country has been studied. The Government’s experts have carefully -watched developments in France, and admittedly the continuous heavy flow of gold capital to America would embarrass the French Government’s standard. Financial circles are jof opinion that France will not bo i ft reed off gold, and that within a reasI onably short time the dollar should attain parity with the franc. The record year’s deficit of about 1.900,000,000 dollars last week chang-

oi! into a surplus of almost one billion dollars today, as tho published balance of tho Treasury took into account the profit to accrue from gold. This is merely a book transaction, as much of tho profit is to be allocated to the Stabilisation Fund. A NEW BANK. ROOSEVELT PROPOSAL. (Received 1) a.m.) WASHINGTON, February 3. President Roosevelt announces plans for the formation of a bank with tho funds of the Reconstruction Finance j Corporation, for the purpose of parti- | ally financing exports, particularly for j Russia. | The capital of the bank is expected ! to total 8,000,000 dollars. j