EFFLUX OF GOLD

Taranaki Daily News, 27 July 1931, Page 7

EFFLUX OF GOLD

FRANCE GREATEST BUYER LARGE SUMS LEAVE ENGLAND OUTFLOW ASTONISHES CITY WAS MORATORIUM HINTED MR. HENDERSON IN PARIS By Telegraph—Press Assn.—Copyright. Rec. 5.5 p.m. London, July 25. The Bank of England announces the sale of bar gold worth £5,269,050, mostly to France. The nett efflux has been reduced by the receipt of 1,050,000 sovereigns from Australia. The Daily Telegraph says the City has been astonished by the persistence of the drain of gold and feels foreign short-term funds are liable to be moved wholesale at inconvenient moments. Lombard Street will welcome their permanent repatriation. The Telegraph’s diplomatic correspondent affirms that Mr. Arthur Henderson at Paris on July 15 used words to M. Laval which are understood to mean that the moratorium for Germany will be followed by a moratorium for England. Alarm was created immediately in French political circles and it is significant that £3,140,000 was taken from the Bank of England the following day. The amount the previous day was £863,000. Gold has been booked to leave London on Monday, but a shipment arranged for Tuesday was cancelled. To counteract the effect of gold the Bank of England rate on Friday was raised from 2} per cent, to 31 per cent.