BRITISH CREDIT

Hokitika Guardian, 21 September 1931, Page 5

BRITISH CREDIT

FEAR OF BREAK. FRENCH WARNING. United Press Association.—By Electric Telegraph.—CopyrigUt.J PARIS. September 19. M. Eland in, interviewed by “L. Matin,’ emphasised that thme would be sinister consequences of a speculators’ attack on ttie pound ster.ing, for. lie said, there would be a un.versai disaster, with a catastrophic slump, if the British were to lose confidence in sterling. That was why France was ready to intervene again. LONDON STOCK EXCHANGE SLUMP. LONDON, September 20. On the first Saturday of reopening of the Stock Exchange to-day, there wrs .selling of British'funds on foreign account, with a further serious marking down of the prices of mines shares. RUSH OF DUTCH SELLINGS. AMSTERDAM, September 19. The Stock Exchange Committee here has reported against the closing of the Exchange, but it has issued grave warnings against sellings, with the result that prices recovered slightly, CAUSE OF ANXIETY, LONDON, September 19. Regarding the position of sterling it is at present the chief source of Britain’s gold drain, Another one million seven hundred thousand pounds worth of gold has been withdrawn from England and sent to Amsterdam, thus making the past week’s total three million three hundred thousand pounds worth. STERIXG FALLS. ! NEW YORK, September 19. Both British Government bonds and the pound sterling have been subjected to sharp pressure’ on Saturday’s financial markets, where these stocks suffered another sinking spell. The United Kingdom five and a half per cent, issue of 1937 dropped by more than 50 dollars per bond of cue Thousand dollars par value, touching nine hundred and sixty dollars. Sterling dropped to four dollars 84 3-5 per cent. * Cable transfers were off by one cent fmm Friday.

Efforts were made to sell sterling short, but the banks declined to accept short- sales. Some future offerings at a lower rate than four dollars seventy-five cent has befett reported. It is beiieVed that tlfis selling has reflected tbe growing Uhcertainity that exists over Britain’s ability to maintain her current gold parity of four dollars 8(5 s*B cents. CANADIAN DOLLAR FALLS NEW YORK,. September 19. The Canadian dollar is to-day quoted at two and a half per cent discount. BREAK IN THE £ FEARED. ' LONDON, September 19. If will be difficult to prevent a break in the pound during the next two months, declares Sir Walter Lavton, in an article in the ‘‘Economist.” If a month is given up to the tourmoiJ of a general election it may be impossible. FEAR OF ELECTION, 1 LONDON, September 20. The opposition of financial circ'es to the holding of a general election has not abated.

The “Economist” says: “A dissolution at the present juncture would mean the inevitab’e collapse of sterling.”