DRAIN OF GOLD

Hokitika Guardian, 27 July 1931, Page 6

DRAIN OF GOLD

■ FROM ENGLAND. [United Press Association.—By Electric Telegraph.—Copyright.] LONDON, July 25. The Bank of England announces that it has made a sale of £5,269,050 to France. The nett outgo of gold from England has been reduced by receipt of one million and fifty thousand sovereigns from Australia. ' The “Daily Telegraph” says: “We are astonished at the persistence ot the gold* drain. There is the feeling ithat foreign short-dated funds are liable to be moved wholesale at inconvenient moments.” It adds: “Lombard Street will welcame the permanent repatriation of those funds.” FRANCE’S IMPORTS. LONDON, July 25. The Bank of England has lost £3,773,000 more in gold, principally .to France. The gold was booked to leave London on Monday, but a shipment arranged for Tuesday was cancelled. THE REASON. ENGLISH MORATORIUM. WOULD FOLLOW GERMAN DEFAULT. LONDON, July 25. The “Daily Telegraph’s” diplomatic correspondent affirms that the British Foreign Secretary,., lit. Hon. A. •Henderson, at Paris' on' July 15th, used words to the French Premier, M. Laval, which were understood-to ineaji that a moratorium on the part of Germany would be followed by a moratorium on the part of England. Alarm was created immediately in French political circles. It is thus significant that £3,140,000 of gold was taken from the Bank of England on the following day. The amount taken to France the previous day was £863,000.