GOLD SCARE

Wanganui Chronicle, Volume 80, Issue 133, 7 June 1937, Page 7

GOLD SCARE

THE LONDON MARKET £4,500,000 IN SALES FEW RECORD FOR A DAY (By Telegraph—Press Association—Copyright) LONDON, June 4. The enormous sum of £4,500,000 worth of gold, almost double yesterday’s record, was sold in the London bullion market, )>?ing absorbed chiefly by the Exchange Equalisation Fund. The offerers were mainly foreign hoarders who were panicky at the possibility of a cut in the price of gold. The good effect on the stock markets which the dropping of the defence contribution brought has disappeared as a result of the gold scare. It was reported from London on Thursday that the largest amount of gold ever offered in a single day was bought by the Exchange Equalisation Fund—£2,565.000. It was believed that a large part of this sum emanated from foreign hoarders, who were alarmed at the continued rumours of a decline in the price of gold. A MADMAN’S MARKET ROOSEVELT ALLAYS FEARS ANGLO-AMERICAN TRADE TREATY Received June 6, 6.30 p.m. LONDON, June 5. Panic is not too strong a wordmadness might be even more applicable—to describe the state of the gold market during the past week. A few years ago it would nave seemed fantastic that the same people who were jealously hoarding gold should feverishly seek to exchange it for printed paper. Yet that is what they are doing, panic-stricken lest the great powers withdraw their support of gold. The hoarders flung nearly £7,000,000 worth of gold on the London market on Friday alone. Four million pounds wortn was taken up and the lemainder ne(d ove* until Saturday. Meanwhile Mr. Roosevelt’-.; slatemen’ that the United States gold jclicy will not be changed has calmed the nerves of a number whose selling offers have been withdrawn. City businessmen are most critical of the British official policy and point out that a clear stateme* t a little wirle ago would nave prevented the panic devek ping. Vita! Trade ’treaty. The Daily Telegraph’s City editor, who has just returned from America, stresses the extraordinary change in the United States attitude io an international trade treaty with Britain. A change from high protectionist isolationism to liberal economic internationalism is one of the most hopeful factors in the world to-day. If Britain fails to meet America in a cordial spirit the consequences will be incalculable and probably will estrange England and America for generations. The Times declares that the Dominion delegates at the Imperial Conference generally agree with the statement of Sir George Schuster that an Anglo-American commercial agreement would be of the greatest value as a demonstration to the Englishspeaking democracies who recognise the value of international trade. Sir George emphasises the importance of Britain and the Dominions understanding the sentiment in America, which feels that private British interests are a serious obstacle to trade negotiation.