BACK TO FRANCE

Poverty Bay Herald, Volume LXIII, Issue 19132, 29 September 1936, Page 5

BACK TO FRANCE

FUNDS IN LONDON DEVALUATION REACTION RISE IN PRICE OF GOLD FIRST BOUT IN CHAMBER CENSURE MOVE REJECTED (Elec. Tel. Copyright—United Press Assn.) (Reed. Sept. 29, 11.15 a.m. LONDON, Sept. 28. Consequent, upon the French decision for the devaluation of the Irane, theie was considerable excitement on the opening of the Stock Exchange market. Dealings in all currencies except French, Swiss and Dutch had ready support. There was an instant, reaction on the opening of the market. The effects of the monetary devaluation were much more pronounced in the City in the afternoon, funds swiftly flowing back to France and resulting in substantial falls in English and French issues, including gold mines. Gold was unofficially quoted in the afternoon at £7 o,s lOd an ounce. The Bank of England purchased £272,114 worth of bar gold. A bullion market report states that 427 bars of gold valued at £1,200,000 were sold. HIGHEST SINCE MAY

To-day’s price of gold is the highest since May 2, when it was £7 Os lOd. The Samuel Montagu company of bullion dealers explains that both Friday and 10-day, the price of sterling and the price of gold is fixed on the basis of iho American exchange. As the value of the pound to-day has fallen by 12 cents, gold, expressed in terms of sterling, has risen to a corresponding extent.

A Paris report stales that the lobbies of the French Parliament were to-day buzzing with a story of an impending Anglo-American supplementary agreement fixing the relation of the dollar and sterling. The United States was reported to he suggesting 495 cents to the pound, while Britain was urging 470. though willing to accept 486. The French Government look full measures to prevent hostile demonstrations during the meeting of the Chamber of Deputies in Hie afternoon. All the lightest newspapers assail the devaluation proposals. M. Leon Bailby, in an article in Le Jour, emphasises that the financial reconstruction between Britain and America was not entrusted to Socialists and comments: ‘lncendiaries never make good firemen.” CONFIDENCE IN CABINET

The Government, won tltc first bout in the Chamber by 365 votes to 24S votes, the deputies rejecting a Right Wing motion to refer the gold bill back to the finance commission. The motion was made- a vote of confidence.

Tlie Chamber, after the receipt of copies of the Gold Bill, adjourned on the demand of the Radical Socialists, who demanded that the Minister of Finance, M. Auriol, should appear at a meeting of their Parliamentary group and explain tiie .sliding scale of wages, the readjustment of Civil Service salaries, and the removal of cuts in war pensions. An: Associated Press message from Geneva says that, so complicated will the effects of the revaluation of currencies be on the League of Nations that, the Fourth Committee decided to refer the Budget back to the permanent commission supervising expenditure. JOINING STERLING BLOC LATVIA AND GREECE ITALIAN BOURSES CLOSE (Hoed. Sept. 29, noon) LONDON, Sept. 28. A message from Riga states that Latvia has decided to abandon the gold standard and join the sterling bloc to-mor-row.

An Athens report states that the Greek Government lias decided to align the drachma with sterling instead of the lranc.

The Government of Switzerland, says a message from Berne, is inaugurating a stabilisation fund from the profits of 550.000,000 francs due- to- depreciation. A message from Home states that tlio authorities have ordered the- Italian bourses to close until Thursday. WEAKENING OF GUILDER STABILIS A TION FUND (Reed. Sept. 20, 11.50 n.m.) AMSTERDAM, Sept. 28. The Prime Minister of Holland, Dr. 11. Colijn, broadcasting, hinted that a slight weakening in the guilder might be expected. The Government would immediately create an exchange stabilisation fund of £40,000,000 and enact legislation to prevent an unnecessary rise in prices. Owing to the satisfactory reaction to the monetary measures, the Stock Exchanges are reopening to-morrow. SOUTH AFRICAN GOLD OFFERINGS DELAYED (Reed. Sept. 29, 11.50 a.m.) CAPETOWN, Sept. 28. No South African gold will be offered in London to-day. It was expected that- the next price fixed would be in the neighbourhood of £7 an ounce, with the possibility of a further appreciable rise shortly. A Johannesburg message says that there wore animated scenes on the Stock Exchange to-day, with heavy buying of gold shares. Even nonproducers were advancing.