LOOPHOLES SOUGHT

Taranaki Daily News, 21 February 1935, Page 5

LOOPHOLES SOUGHT

GOLD CLAUSE JUDGMENT

INVESTORS’ CLAIMS FEAR BIG FINANCE PROGRAMME LONDON REPERCUSSIONS By Telegraph—Press Assn. —Copyright Rec. 7 p.m. Washington, Feb. 19. Elation in Administration circles over the favourable decision in the gold clause case changed to serious consideration to-day of possible loopholes in the decision as it pertains to the gold clause in Government bonds. Reports from London that holders of such securities are preparing a court action to force payments in gold led some to believe that Congress will pass special legislation denying any or all bondholders under any consideration recourse to the court. Meanwhile the Administration is preparing to push ahead with its 4,000,000,000 dollar financing programme when and if Congress passes an enabling Act under the non-gold clause basis. Both the security and commodity markets turned easy to-day after yesterday’s enthusiastic reception of. the Government’s Supreme Court victory by traders. The volume of sales on the New York exchange was greatly reduced. Steady, though orderly selling, gradually erased yesterday’s price gains and it is reported that yesterday’s frantic buying was largely by speculators who were “caught short.” , A firm tone, following the United States gold clause decision, characterises London stock markets, says a British Official Wireless message. Leading English issues were mostly higher. British Government stocks were firm and the War Loan reached £lO7 ss. Throughout the day there were active dealings on the Stock Exchange,, most West Australians showing advances in the street after the close as the news of a favourable Yellowdine cable spread. Commonwealths reached 16s 6d. “Not only meat negotiations,” says the Times, “but all trade discussions with the Dominions would be eased if the British Government could define, however roughly, the place of agricultural industries in the economic system of Britain, and if the Dominion Governments could be equally clear about the development they desire for secondary industries.