TALK OF INFLATION

Poverty Bay Herald, Volume LX, Issue 18179, 29 August 1933, Page 5

TALK OF INFLATION

WILL GOLD BE ABANDONED ? THE RISE IN PRICE HOARDING BY FOREIGNERS (Elec. Tel. Copyright—United Press Assn.) (Received 1 August 29, 11 a.m.) LONDON, August 28. The belief that Britain will not much longer be able to resist inflation is growing with the rise in the price, of gold. The Financial News devotes half a column to discussing investors’ best policy in the event of inflation. ,'TJie Financial Times declares .that con-, fideneo in all forms of currency is steadily decreasing. The entire amount of £200,000 of bar gold offered on the market on .Saturday was taken by Continental buyers, most of whom are hoarding the metal in London. It is estimated that the gold stored in London safe deposits amounts to £50.000,000, trie bulk of which belongs -to-foreigners.-. v * : r ... "As the Bank of‘ England ‘ is* empowered to purchase British hoards at* the’ statutory price of 84s 9d' per ounce, some sections of the City expect a general abandonment of the gold standard before 1934.

in London sate deposits amounts to £50.000,000, the bulk of which belongs -to-foreigners >■■ ■<. ■ - ■ I F "As the Bank of‘ England‘ is* empowered to purchase British hoards at* the’statutory price of 84s 9d' per ounce, some sections of the City expect a general abandonment of the gold standard before 1934. “The City attaches the greatest significance to the Roosevelt-Norman conversations, many hoping, that they;will result in a stabilisation agreement, as it is believed that Mr. Roosevelt is disinclined to inflate, while Mr. Montagu Norman considers the general abandonment of gold extremely dangerous, SCRAMBLE FOR GOLD SHARES Owing to tho foreign exchange developments, the scramble to deal in gold shares has made the Kaffir market difficult to reach. Kaffirs fluctuated wildly in the first few minutes, rises of 6d to 7s 6d occurring throughout the list. Heavy profit-taking followed, hut there were still substantial gains in gold shares in, the afternoon. The price of gold is £6 8s B£d. To-day’s fall of 7£d in the price of gold caused some profit taking. West Africans, .Indians, and West Australians went up. Another major feature on the London stock markets was the continuance of a steady rise in home rails. The dollar is quoted at 4.58.

“The City attaches the greatest significance to the Roosevelt-Norman conversations, many hoping, that they;will result in a stabilisation agreement, as it is believed that Mr. Roosevelt is disinclined to inflate, while Mr. Montagu Norman considers the general abandonment of gold extremely dangerous.