EXCHANGE CRISIS

Hokitika Guardian, 6 February 1920, Page 2

EXCHANGE CRISIS

TRADE SUFFERING MADLY

(By Electric Telegraph—Cooyright.i

LONDON, Feb. 4

Yesterday a finance conference was held here. The exploratory character, of the attempts at a solution of the exchange crisis by legislation were depiecated. The possibility of controlling imports bv licenses was suggested. ‘ Sir Vassal- Smith, (Chairman of Lloyds’ Bank), who was present' at the conference in a speech at the annual meeting of the bank yesterday, said that unless remedies were promptly applied, he feared that a gradual, but a persistent spreading of bankruptcy and anarchy must ensure. It is anticipated tliat tlie Cabinet will come to a decision quickly. The .whole question will be raised at a meeting of Parliament in the finance debate. .

Meanwhile the effects of the' crisis upon the cotton industry illustrated the likelihood of all sections of the comniun. itv suffering most'severely. ‘Yesterdav’s dollar quotations brought cotton imports business at Liverpool to a standstill. The cotton importers have begun to re-ship their cotton to America. Inis matter is a most serious one for the mill operatives, because the present stocks of cotton will be exhausted in ten weeks, although there are considerable quantites at sea. NEW YORK, Feb. 4. The sterling exchange now stands at 3.25 cents.

GOLD RISES FURTHER. LONDON, Feb. 4

'f’he fall in the New York exchange to 3.25 per £1 has further reinhitneed gold. The .nominal quotation is now--16 5s 9d per ounce.

A PANICY MARKET. FURTHER, DROP IN EXCHANGE. (Received this day at 8.40 a.m.) NEW YORK, Feb 4. The Exchange market was very panicy to-day. Sterling exchange rates reaching 3.14 and later recovering to, 3 25. The stock market receded sharply and virtually all issues were selling at large losses. Cotton fed off 25 to ICO points on the report that Britain had stopped cotton imports. Tlie exchange situation has, caused a drop m ocean freight rates. The rate for carry jug wheat across the Atlantic was 75 cents per hundred weight in 1919. Space can now he obtained for 35 cents. There is a hope expressed that tlie British financial conference will remedy the exchange situation. Exporters here believe' it will be necessary for England and France to release large gold stocks, before exchange can ■ be stiffened.