EXCHANGE CRISIS

Hokitika Guardian, 16 January 1931, Page 6

EXCHANGE CRISIS

NEW ZEALAND STOCKS

ADVERSE EFFECT OF EXCHANGE

United Press Association.—By Electric Telegraph.—Copyright.]

LONDON, January 11

“The Tiines’s” City Editor says: There is some selling of New Zealand stocks influenced by the increased discount on the New Zealand pound sterling. AUSTRALIAN STOCKS. ' LONDON,- January 14. “The Times’s’* City-'- Editor says’: The latest news is indicating the strength of Mr J. IT. Scnllin’s position and also Mr Lang’s weakening slightly. This'has heartened the market for Australian ■ stocks. With the cessation of the recent panic-selling, the bargain limiters have taken action, which has stiffened the quotations.

MR. SOU I/LIN OBJECTS

MELBOUBNE, Jahimry 15

ft is revealed that a proposal to ask the leaders of the Oppositon parties to assist in efforts to establish Australian finances was rejected by the Prime Minister, Ron. J. H. Seullin, at yesterday’s Loan Council meeting. Mr Scullin- expressed' the opinion that it Would lie impracticable.

A PESSIMIST

MELBOURNE. January 15

Mr Barnes'; Queensland-Treasurer, •is pessimistic about the outcome ■ of' the proposed conference of experts, which is to be directed to formulate a t hree year plan for I he-rehabilitation of tiie national finances. Flo says be cannot see bow they- Can make kny incoming. Govern merits' accept- the plans of its predecessors'. That moreover, all sorts of political exigencies arc likely to militate against the success of any plan

INTEREST IN MR. SOU I,LIN'S SPEECH. LONDON, January M. The “Financial News” says: Political affairs in Australia have now reached a decisive stage. Investors will scrutinise Mr Seullin’s speech tonight with the' utmost care.

ANOTHER COLL APSE

ARGENTI NIC’S EXCHANGE DROPS

NEW YORK, .January 14

The “New York Times,” to-morrow will print a despatch from Buenos Aires, stating that the Argentine exchange has dropped to such a low level that the peso is now selling at fifty per cent, discount as against sterling, and that the dollar of the country faces the possibility of a moratorium. It will also state that the private merchants in the Argentine who are purchasing American and British goods are facing bankruptcy and they are informing the houses with which f.hev trade that hereafter they will accept goods only on assignment until the exchange position improves. The

position is' explained in part by the following facts:- The failure of the Government to. annoiime a financial programme that would measure both foreign and domestic interests; is in elasticity of the currency system, ami which Caji De Conversion holds 77 per cent of a gold reserve against its notes, whereas forty per cent would be sufficient. while the Government declines to make the necessary shipment of gold abroad to support the exchange; also its activities of certain wheat interests, who are selling at sterling, and have dumped so much wheat into Liverpool as to break the market, and nave none the less made large profits on exchange. These have all helped to j.K.dtc'-e llu.- chaotic situation.