MENACING OUTLOOK

Taranaki Daily News, 24 December 1935, Page 5

MENACING OUTLOOK

DETERMINATION OF ITALY MEDITERRANEAN DANGER CHRISTMAS IN BRITAIN STABILITY OF MARKETS By Telegraph—Press Assn.—Copyright. London, Dec. 22. The Sun-Herald says it is long since an international situation at Yuletide was so menacing. Whatever has emerged in the past few days, nothing is clearer than that Italy is more determined than ever to blame Britain for any happening contrary to her welfare. The future of the Mediterranean is discussed in all quarters* Germany regards Mr. Stanley Baldwin’s and Sir Samuel Hoare s< ; speeches as evidence of their belief that war is by no-means a distant possibility. The Berliner Tageblatt says: “However we look at the matter we come back to the fact that Britain officially admits that Europe is on the way to a serious crisis, with the possibility of an armed struggle in the Mediterranean, in which Britain and Italy are the chief figures. There is not the slightest hint how the British Government proposes to avoid a calamity.” M. is added that significance is lent to Britain’s forces and material in Egypt and the Mediterranean by the fact that the Admiralty’s and the War Office’s approval of the release of information coincided with news from Rome reporting the movement of Italian forces to Libya and preparations for an early dispatch from Italy of a further mechanised division and troops to Benghazi, on the Libyan coast. IN LIBYA. Although ' Signor Mussolini withdrew certain units from Libya it has never been clear whether the whole division has left Africa. It is known that several hundred motor vehicles of various types were sent to Libya in the intervening period. The bulk of these forces has been concentrated in eastern Libya along the Egyptian frontier, and at present outnumbers the British forces in Egypt by three to one. Mr. Neville Chamberlain in a speech stated: “It will be the duty pt this Government in these coming years to restore our defence forces to a level at which we can feel that not only have we secured the safety of this country and those great trade routes between us and other members of the British Empire upon which our existence depends, but that we will also be in a position to back up collective action by the League.” Though London City business men voiced opinions that the political crisis is not yet definitely at rest the country’s markets did not reflect the storms which nearly wrecked the Government. Quotations were lowered as a precautionary measure, but there was no panic and little selling. The markets closed for the week cautious but in a steady mood. COAL STRIKE POSSIBILITY. Iron, steel, coal and allied shares were affected by the possibility of a coal strike on January 27, though the city was inclined to consider it inconceivable that such a major industrial disaster would be allowed to occur. Everything hinges on a meeting of coalowners and men early in January, when it is hoped that the men will accept portion of the demand for 2s a day increase. The Bank of England note circulation reached a high record, easily surpassing the previous peak of £412,000,000. It should be even higher next week. The indications are. for a most prosperous Christmas for shops and others catering for holiday trade. The bank established another record in gold holdings, which have now advanced beyond the £200,000,000 mark. Silver continues to cause anxiety. City business men commenting on American reports that the United States Treasury proposes to call a conference with the object of inducing Mexico, China and other silver countries to retain silver reserves, are sceptical whether good will be done to the market, more inclining to the belief that the price will fall to 17d or 18d an ounce before it touches bottom.