CURRENCY CRISIS

Hokitika Guardian, 25 September 1931, Page 5

CURRENCY CRISIS

NEW YORK QUOTATIONS. - (United Press Association.—By Electric Telegraph.—Copyright.) NEW YORK, September 23. The pound sterling to-day closed at 4.10, and the Canadian dollar at ninety-four. Wall Street revolted against t.:e pessimism through news of wage cut: and rumours that the railroads won d soon get relief. Confidence is ini, hed by the London market’s good tone! The removal of the ban on short selling here gave quotations a rapid lift. Principal Stocks at best, were two to fifteen dol ars higher, but profit-taking reduced the gains. Buying was resumed in late dealings, rail shares closing virtually at best prices, with indust : als and utilities showing advances over Tuesday’s final quotations, by two to six dollars. FOREIGN SECURITIES. LONDON, September 24. The investing public here are being urged that now is the time to sell out their United States securities and their French securities and to replace them wit!) British securities. BUY EMPIRE GOODS! IRISH PRESIDENT’S APPEAL. ", DUBLIN, September 24. Th;© President of the Irish Free) State, Mr Cosgrave, has issued an appeal to the Free State people /to buy Home or British products. He also appeals to the people of Great Britain to buy from the Free State, rather ' than to buy foreign goods. FINANCE BILL. LONDON, September 23. The Finance Bill passed the second 1 reading by 297 votes to 238. Mr Baldwin will preside over the Cabinet and will take the place of the Prime Minister, while the latter is having a few days’ complete quietude in the country. In the House of Commons, the • Finance Bill was discussed on'the sec-, 1

ond reading which was opposed for the Labour Party by Mr Pethick Lawrence cn the grounds that it imposed disproportionate hardships on those least able to bear the new taxes. 'Sir J. Simon and other speakers in support of the Bill emphasised the need for a determined policy to keep > the Budget balanced in view of the departure from the gold standard. ■ The time-table passed by the House yesterday provided for a division cn the second reading to-night. To-mor-row and on Friday, the Hcuge of Commons will take the. committee stages of the Bill. BUDGET AND TRADE, GOVERNMENT VIEWS. LONDON, September 23. In the House of Commons, Sir Jolm Simon said that their departure from the gold standard meant that the need for a balanced Budget was more urgent than ever. Many, he said, argued that such departure from the gold basis automatically disposed of the problem of the adverse trade balance. Temporarily, it would block imports, but would do so only in an undiscriminating way, no matter whether the imports were.' 1 of .food, raw materials, or luxuries. He said the depreciation of, the pound had no relation to imperial preference. Lord nugh Cecil said that, though a revenue tariff might be harmless, a tariff definitely intended to restrict imports would be disastrous, as it would de«troy a large part of the country’s wealth that wa s coming from abroad, and would suffocate their foreign trade. “To balance our trade,” lie said, “we must increase our exports, and this is only possible by reducing the costs of production. THE FIFTEENTH. LONDON, September 23. Mr D. Hall Caine is supporting the National Government, making . the fifteenth Labour member to leave his own party, BENT ON A TARIFF. LONDON, September 24. “The Times’s” political correspondent states: “The Conservatives are at present the only united party. Mr Baldwin, Sir A. Chamberlain, Sir S. Hoare, and Sir P. Cunliffe Lister are entirely agreed that the suspension of the geld standard has not removed the urgency for emergency general elections, which is the only method of satisfactorily introducing a tariff. RISE IN PRICES. * EVIDENT IN AUSTRALIA. SYDNEY, September 24. British trading at the Stock* Ex- . changes, both he.'a and at Melbourne . continues, and gains have been registered in practically all 'sections. The general tons is more buoyant than for a year past.* The turnover is one of lai'ge dimensions, and great strength is displayed bv Broken Hill mining stoks, and, to a lesser degree, by the chief industrial stocks and the banks’ shares, which are firm. * The business in the baric commodities has been somewhat upset, owing to the unrortainity in the international exchange position. Bulk wheat, howovor, is much firmer.

BRITAIN’S IMPORTS,

TARIFF EXPECTED SOO'N

LONDON, September 24

In response to the Government’s urgent appeal in that direction, London stores report that there is a. marked increase in the demand for British and Dominion products, and particularly foodstuffs. All of the indications axe that the time is now most opportuixe for a big trade push here from overseas. People are increasingly realising the importance of reducing the foreign payments. Housewives everywhere are asking before purchase, whether goods are British. Australia and New Zealand have never had a greater opportunity of Strengthening their hold on the British market, and any propaganda efforts now are likely to ba well i*epaid.

The newspapers giv 3 prominence to the New Zealand Dairy Board’s attempts as already cabled 1 especially to a picturesque phrase about the sailing of an “Empire Butter Fleet” of 35 ships from New Zealand by the end of November. FOREIGN FOODSTUFFS. EXCLUSION EXPECTED. LONDON, September 24. Regarding the advisability of a trade push in Britain by Australia and New Zealand, the xiew Government Is sure to look to the Dominions to supply the deficiency of foodstuffs that wdl be caused by the exclusion, or the limitation, of the importations of foreign produce. Thus, if, as is generally supposed a' general election is immi-

nent it will be a short, sharp contest, and it woxxld be followed immediately by a tariff, thus checking imports. No Government, it is pointed out, could expect to last if the British larders became empty, or if the prices of foodstuffs were allowed to soar. The Dominions, therefore, will, most likely, be called on to make up any deficiency of products. There is plenty of shipping available and attempts at profiteering will be sternly repressed.

NEW ZEALAND PRODUCE

LONDON, September 23. The New Zealand Dairy Produce Board has issued statement, in view of the prospect of a diminution in foreign imports following the departure from the gold standard, assuring the public that New Zealand will unprecedentedly make an effort to increase of food supplies for the Home market without higher prices. Wholesalers everywhere declared that any rise in food prices at present would be entirely unjustified, and a deputation from the Grocers’ Federation waited on the Board of Trade to assure the Government that they would co-operate in every possible way to keep pi’iees down. The Government frill, of course, take steps to Control prices. The Chancellor* of the Exchequer has given a definite assurance on that point hut so far in not a single shop has the price been altered. The rule everywhere is “Business as usual,” and the one and only exception to it is purchases on foreign exchanges or transfers of funds by British subjects, which are not -permitted, except for the purpose of financing normal trade requirements reasonable travelling or personal purposes, or contracts existing before September 21* The Governor of the Bank of Englandv (Mr Montague Norman) reached England to-day from Canada, where he has been holidaying.

LONDON STOCK EXCHANGE.

INDUSTRIAL SHARES RISE,

RUGBY, September 23

When t-lie London Stock Exchange and provincial exchanges re-opened j to-day, substantial gains were recorded throughout the home industrial grou-p, iron and steel shares being par. ticularly strong while motors, electrical description, breweries, newspapers, chemicals textiles, and tobacco all benefited by the optimistic conditions. The outstanding feature of the day’s business was the substantial rises in industrial securities. These were caused not only by “bear” cornering, but by a considerable volume of buying orders recorded throughout the home industrial group. Iron, steel, and textile shares took the lead in this department. The Stock Exchange was cheerful all day, the outstanding feature being the strength of industrials, in which there was -some increase in* buying orders, though most advances were quotations, • due to “bear” coverings. Commodities generally have risen, lead, ing oils being considerably higher, and rubber and tin firm. Everywhere dealings were conducted in calm, cheerful atmosphere.

PRICE OF GOLD. LONDON, September 23. The price of gold is now nominally £5 per ounce, or Lss per oz dearer than last week. sterling quotations. LONDON, September 23. Values of sterling abroad are:— New York, Tuesday 17s 3d, Wednesday l(\s 10J-d ; Paris 17s 2d. and Ifs r d, Amsterdam, 17s 4d and 16s lid ; Brussels 17s 2d and 16s lOjd: Berlin. 18s Ud end 17s 64: Mcntreri 19s 3d and 18s 9d: Stockholm, 19s PRI and 1 8s 2d; Copenhagen 19s 9jd and IBs 8 cl. TARIFF AGITATION. LONDON. September 23. The Londop Chamber of Commerce

has informed Mr MacDonald that out of 8787 members circularised, requesting an opinion as to whether Britain should change her fiscal policy, over half -have now replied, 4106 favouring an immediate tariff and 341 a continuance of free trade.

CERMAN COAL TRADERS.

BERLIN, September 23

The coal trade is growing alaimed at the development of sterling. Commercia. papers ai*e filled with anxious articles dealing with fears of British =oa 1 damping. The Deutsche AJigemeiim is of opinion that strong restrictions if not complete,prohibition jf coal imports, wi.l be necessary “Borzen Zeitung,” while rejecting a bail on imports, owing to intei nat.ona. complications, recommends the Reiehs Bank to refuse to issue st._r.ing for coal purchases. FRESH WARNNIG. LONDON, September 23. ■Sir Walter Layton stresses the probability of the depreciation of greater disorganisation of other currencies. The latest events do not indicate what will, happen to the pound, but lie ad- [ vises British in vectors to refrain from hasty snle s of Government stocks, and urges an immediate international agree ment to prevent disastrous competition to depi'cciate currencies. SILVER QUESTION, RUGBY, September 23. At a meeting of the China Association, Sir R. S'. Horne said that added importance was given to the silver problem, owing to the fact that threequarters of the world’s available supply of go'd was in the hands of tw r nations, while other nations were steadily denuded of it, and that, according to the calculations of experts the world’s supply of gold, no matter how well distributed was likely in a comparatively few years to come to be insufficient for the needs of commerce. Certain Powers bad discouraged the proposal for an international discussion on gold distribution, but a more favourable reception might be given to a conference upon silver. The United States Senate unanimously requested the President to ca’l such a conference, and it is believed that President Hoover will be willing to act if evidence is forthcoming that such a step would be welcomed and that the times therefore were propitious. Every economic theory was to-day under new scrutiny, and be urged the serious consideration of all the various suggestions as to bow the problem could be dealt with, whether by arrangment among Governments to sustain the price of silver, o rby be central banks holding silver by international agreement, as part of their currency reserves, or even by re-monetizing silver and .setting up a bi-metallic basis for the leading monetary systems of the world. AMSTERDAM, September 23.

The Bankers’ Syndicate has already been abolished and monetary traffic i s functioning normally.