RISE IN GOLD

Southland Times, Issue 22106, 29 August 1933, Page 5

RISE IN GOLD

FOREIGN HOARDING

INFLATION IN BRITAIN POSSIBLE

CURRENCY PROBLEM

(United Press Assn.—Telegraph Copyright.) (Rec. 10.45 p.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 devoted half a column to discussing the investor’s best policy in the event of inflation. The Financial Times declares that confidence in all forms of currency is steadily decreasing. The entire £200,000 worth 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, the bulk of which belongs to foreigners, as the Bank of England is empowered to purchase British hoards at the statutory price of 84/9 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 conversations between Mr Roosevelt and Mr Montagu Norman, Governor of the Bank of England, many hoping they will result in a stabilization agreement, as it is believed that Mr Roosevelt is disinclined to inflate, while Mr Norman considers a general abandonment of gold extremely dangerous. POUND AND DOLLAR RACE IN DEPRECIATION. FRANC ADVANCES SHARPLY. (United Press Assn.—Telegraph Copyright.) London,. August 28. Referring to the currency confusion, the Daily Telegraph says the pound and the dollar last week were each left to find its own level, the Exchange Equalization Fund having apparently suspended its activities in holding sterling. That could only be the possible explanation for the sharp advance on Saturday in the franc, mark and other gold currencies. They have risen steadily since the Economic Conference. Already widespread apprehension exists in Europe as to what this portends and the allegiance of France, Germany, Holland and Switzerland to the gold standard will be tested by the race in depreciation between the pound and the dollar. Unless the movement is checked questions loom ahead to disturb Europe.