EFFLUX OF GOLD.

Waikato Times, Volume 110, Issue 18392, 28 July 1931, Page 7

EFFLUX OF GOLD.

THE TIDE STEMMED. ALARMIST REPORTS DISCOUNTED. BASELESS FEARS. United Press Assn. —Elec. Tel. Copyright. LONDON, July 27. Despatches from Paris state that Britain's success in stemming the How of gold from the Bank of England has excited the admiration of financiers, vho admit that the recent alarmist reports regarding the financial condition of Britain are groundless. Since the return to Paris of the Prime Minister, M. Laval, he has been emphasising his belief in Britain's economic soundness, thus counteracting the efforts of the sensational section of the press. . In order to assist In stemming the flow of gold, agents of the Bank o* England brought up French credits to the extent of £6,000,000. This, combined with the rise In the bank rate, had the desired effect, although Saturday’s efflux of gold would have been larger than ever but for the eleventh hour cancellation by the Bank of France. The Daily Telegraph’s Paris correspondent says the abnormal exodus was not Initiated, Inspired or controlled by the French Government or the Bank of France, but was of political origin. It was due to the baseless fears of certain French capitalists that the economic situation in Britain made desirable the conversion of French balances in London into gold in the vaults of tho Bank of France. The correspondent says the British trade figures, the Budget deficit, unemployment, the troubles in India and the financial embarassments in Australia were all emphasised. To-day sees the turn of the tido.