CURRENCY CRISIS

Hokitika Guardian, 28 September 1931, Page 5

CURRENCY CRISIS

l/ONDON STOCtf EXCHANGE RESTRICTIONS. (United Press Association.—By Electric Telegraph.—Copyright.) LONDON, September 26. The new Stock Exchange ru.e, forbidding a.l but cash dealings has had the desired effect in the restricting of speculation. The total turnover, owing to an improvement of sterling and British funds, moved up. The foreign exchanges showed an improvement all round of from one penny to three pence in the £ in the value of sterling. ITALY! S PRECAUTIONS. ROME 1 , September 27. Tlie bank rate in Italy has been raised by one and a-lialf per cent, to seven per cent. FRENCH ANXIETY. PARIS, September 20, The fall of sterling continues to cause great anxiety. It means an enormous depreciation of the value of the sterling holdings of the Bank of France and the holdings of other hanks. There has been a meeting between M. Flandin, treasury officials and M. Moret, This is believed to be concerned immediately with the rescue of the National Banks of Credit, which recently has continuously last deposits. It is expected that the bank will he absorbed by a group headed by the Credit Lyonnais. M. Laval and M. Briand have gone to Berlin. BERLIN, September 26. The banking house of S. Schoenberger and Company, of Berlin and Amsterdam, has closed, owing to its losses caused through the depreciation of sterling.

GENEVA, September 26

The League Assembly passed a resolution in fatour .of a reduction of expenditure and .fewer Committee meetings. CONTINENTAL EXPORTERS. HIT BY STERLING SLUMP. LONDON, September 2b. There has been a world-wide confusion and “nerves!’ following on Britain’s abandonment of the gold standard. This has eloquently demonstrated how sterling has been' the key of the world’s business. The German Steel Trust, is closing its YVissen mills, with one thousand employees, ninety per cent, of. whose output has been sold to foreigners on a sterling basis. , , ■ . Cllattlb&rS of Commerce throughout ■ Grange ai*e inundating the French Cahiliet, pleading for its intercession to pro. vent a British tariff; • • The Roubnlx and Totircolng textile traders are very perturbed at the star, ling slump, which has automatically placed an impost of thirty-three per cent, upon their output. This points out that hitherto woollen ,yarns and fabrics have constituted one tenth of the French exports to Britain. TOURIST TRAFFIC UPSET. PARIS, September 25. The present quotations of the pound sterling promises to be almost a knockout. blow to France’s valuable tourist traffic. The German crisis, which has resulted in a tax of five pound sterling being levied on Germans leaving their country for holidays, has also kept thousands from France. . The lavishly expensive Riviera resorts to which tens of thousands of Britishers resort for the winter will practically be deserted. Incidentally fewer wealthy Americans are crossing at present. The favourable French Exchange on the other hand is a great inducement ■ to the French to visit England. The French touriste agencies are already urging French people to spend holidays at home in France. REPORTED AGREEMENT. RUGBY, September 25. A Geneva message states that an Agreement has been, reached regarding the Italian proposal for an armament truce.