BRITISH CAPITAL

Wanganui Chronicle, Volume 79, Issue 65, 17 March 1936, Page 7

BRITISH CAPITAL

MILLIONS IN GERMANY CITY INFLUENCED FRENCH LOAN AMPLY SECURED By Telegraph—Frees Association—(Xpyriffet) LONDON, March 14. The pro-Germanism of many City businessmen iu the present crisis is the natural result of Britain’s investment policy before Hitlerism. Millions of pounds of British capital are at present locked up in Germany owing to the Nazi Government’s exchange and other restrictions, and investors are on the whole realising that the hopes of again seeing their money are slender. They are naturally opposed to any policy which might destroy them altogether. Britain’s financial stakes in France cannot similarly be considered. The recent £40,000,000 loan to France is secured on the Bank of France’s undertaking to maintain for the duration of the credit balances in sterling and gold in London equal to the outstanding amount of the loan. The City is also influenced towards Germany by the Bank of England’s notorious admiration of Dr. Schacht’s financial abilities. It remains tu be seen whether Dr. Schacht's reported estrangement from Herr Hitler will influence the Bank of England’s attitude. War Risk Premium Lloyd's premium for war risk for any of the nine principal European Powers for three months is five guineas per cent., but the rates are expected to rise, not because the risk is considered as becoming worse, but because the market in such speculative insurances is most limited. The rate of half a crown per cent., accepted to cover a large amount of merchandise in Strasbourg against war perils for years, is more representative of the market’s feeling. The Economist declares that the behaviour of the markets has afforded reassuring evidence that London continues to possess the qualities appropriate to the international financial centre in time of crisis. Though con'l siderable selling developed late in the week-end, there was no trace of panic. Gilt-edged and foreign bonds declined appreciably but Dominion issues were firm. The heaviest falls were recorded in industrials, many of which, lost two months’ gain. The future course of the markets cannot be predicted, but it is generally agreed that, if the international situation clarifies, the strong undertone evident last week will lead to rapid recovery. Commodity Markets The commodity markets naturally swung the opposite way to the {Stock Exchange, but sober determination to await events prevented spectacular developments. The downward movement I in foodstuffs continued, butter especially being irregular. Australian choicest salted was quoted as low as 83s per cwt. during the week the weakness being due to the continued lack of support from the general trade, which seems to lack confidence generally. Tooley {Street merchants considered ! that buyers will, at least in the immediate future, operate on a hand-to-mouth basis, as the result of which • there is no prospect of an appreciation in prices. Supplies of meat at Smithfield continue to be in excess of requirements | and prices have eased. Wool Market Strong The opening of the wool sales justified expectations. A well-known broker, commenting on the growing shortage of supplies, declared that sheep were nearer the machine than ever. The Financial Times reports an enormous demand for woollen manufactures, especially cheaper qualities, which are regaining popularity at the expense of rayon. Unemployment in the wool trade has been halved during the year. The Associated Press understands that the pace of the London sales was set by the Continent, especially Russia, which is taking all qualities at good prices. Bradford is buying considerable weights of crossbreds, but little Merino presumably because the topmakers feel that it is impossible to make higher prices. The trade is speculating how far the international situation is responsible for the present activity, but it is agreed that Merinos are unlikely to weaken for some time. The majority of buyers appear not to be influenced by politics, but are guided simply by the healthy statistical situation. EX-SERVICEMEN PARADE WARTIME COLOURS BANNED HERIR HITLER’S ORDERS COLOGNE, March 15. In order to avoid provocation of foreign Powers, Herr Hitler forbade the carrying of watirne colours in the ex-servicemen’s parade on the occasion of the dedication of new flags designed by him, 020 of which were carried. GERMAN LEGAL AUTHORITY I DEPARTURE EOR LONDON Received March 16. 9.10 p.m. BERLIN, March 15. Friedrich Gaus, Germany’s diplomatic legal authority, has left for London. Apparently if Germany is to be represented at the League Council it will be by Herr von Hoesch. POLICE ACTION BIG BERLIN BUSINESS CLOSED UP BERLIN, March 14. Police closed up one of the largest wholesale provision businesses in Berlin, alleging that during the butter shortage it favoured Jewish customers at the expense of Aryans