DULL WEEK LIKELY

Gisborne Herald, Volume LXVI, Issue 20093, 13 November 1939, Page 5

DULL WEEK LIKELY

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ALARM OVER HOLLAND SHARP RISE IN COTTON WOOL IN SHORT SUPPLY » (Elec. Tel. Copyright—United Press Assn.) i Reed. Nov. 13, 11 a.m.) LONDON. Nov. 12. Increasing alarm for the security of the Netherlands flattened the Stock Exchange and Continental Bourses.

Amsterdam is the worst sufferer. Brussels is similarly affected, while the flight of capital from Belgium and Holland had sharp repercussions on exchange quotations. The Dutch authorities were obliged to intervene

to maintain the guilder, but official support for the Belgian currency is less vigorous, with the resu.lt that the bciga made a sharp decline. The Dutch are believed to have made considerable inroads on the gold reserves to maintain the guilder. Capital lias been flowing freely from Holland to New York in the past few weeks.

The Paris Bourse, by contrast with London, Brussels, and Amsterdam, took little notice of the German and Dutch news, and actually closed the week firmer. However, the outlook is for a dull week unless the situation clears at the week-end.

The outstanding movement among commodities has been a boom-like rise in cotton, mainly attributable to the tightness of shipping space, due to the withdrawal of American shipping.

There is a considerable Government demand for wool and, consequently, supplies of crossbreds for civilian purposes are restricted.

Rubber moved only fractionally. The tin position, shows signs of casing. The Government demand for wheat has expanded considerably.