GOLD DEPARTURE

Hokitika Guardian, 22 April 1933, Page 5

GOLD DEPARTURE

AMERICAN MOVE

EXPRESSIONS OF OPINION.

United Press Association—By Electric Telegraph— Copyright.;

BERLIN, April 20.

Financiers associated with the Reiclibank consider that fluctuations of the dollar cannot touch the dollar exchange in the long run. America is the world’s greatest creditor, and therefore the continuous demand for dollars will maintain the dollar quotation near parity. America’s action is necessary to prevent irregular withdrawals oi gold. It is unlikely to affect German currency, which stocks of foreign currency adequately protect, but the lasting depreciation of the dollar would decrease German exports, and possibly necessitate a moratorium.

LONDON CIRCLES ASTONISHED.

LONDON, April 20.

America’s abandonment of the gold standard astonished both the Government alld city circles. it is widely regarded as a tactical manoeuvre by Mr Roosevelt, on the eve of Mr Mao Donald’s arrival, especially ;is Ame* ria, with masses of gold and vast natural resources, Idas no phasic reason for abandoning gold. Financiers were surprised by America’s blow to Britain’s last international bargaining point.

OPINION OF THE “TIMES.”

LONDON, April 21

“The Times,” in a leading article, states: Fluctuations of the paper dollar would greatly increase the instability of the unstable world. The fligli-B from the dollar is comparable with the flight from the franc. It might produce a race in currency depreciation, the end of which it is difficult to foresee. On the contray, if it is wisely handled, this departure from gold by the country which has recently been the most prosperous in the world may eventually facilitate the restoration of a single international monetary standard.

PAPER MONEY TO PAY DEBTS WASHINGTON, April 20.

Senator McAdoo (Democrat, California) former Secretary to the Treasury, to-day introduced a Bill to authorise the issue up to eight billion dollars in United States notes, to refund the Government’s short-term debts, maturing within the next five years.

APPREHENSION IN FRANCE. PARIS, April 20,

Apprehension prevails in financial circles regarding the Anglo-American money war, in which it is felt both are using weapons of currency inflation, leaving France at the mercy of a depreciated dollar and sterling, ,'l/t is considered that Mr Roosevelt’s decision will make the international confusion worse,

BRITISH CURRENCIES RISE.

NEW YORK, April 20.

British currencies continued to skyrocket, the normal opening quotation for the pound being 389 cents in United States funds, and for the Canadian dollar 89i cents. French francs rose approximately one-fifth of a cent to 4.42 cents. Other eunencies also rose. By noon, British currencies had receded slightly, the pound being quoted at 38(5, four cents under day’s high level.

MONTREAL STOCK EXCHANGE MONTREAL, April 20.

The pound pursued an upward course all day, closing at 439£- on Wednesday, and opened at 4411 on Thursday, jli, climbed gradually to 445.

HOLLAND REMAINS ON GOLD. THE HAGUE, April 20. Holland is unlikely to abandon tlie gold standard.