BRITISH CURRENCY

Hokitika Guardian, 29 August 1933, Page 5

BRITISH CURRENCY

INFLATION NEAR “CONFIDENCE IS DECREASING.” United Press Association—By Electric 'i elegrapU—Copyright;. LONDON, August 28. A belief that Diritam will not much longer i>e able to resist tne inflation ot ner . currency is growing wicli the rise in the price of gold. •xne VA'Wthiiial News” has devoted a whole column to the discussion of tile investors’ best policy in the event ot wim. The “Financial Times” declares: “Confidence in all of the forms of currency is steadily decreasing. The entire total of two hundred thousand pounds sterling worth of bar gold that was offered on the market on Saturday was taken •by Continental buyers, most of whom arc hoarding the metal in. London. it is estimated that the gold stored in London safe deposits amcrants to fifty millions sterling, the hulk of which belongs to foreigners, as the Bank of England is empowered to purchase British hoards of gold at a statutory price of 84s 9d pel' ounce. Some sections of the City expect the? general abandonment of the gold standard before 1934, The city attaches the greatest significance to the conversations about to be held at New York between President Roosevelt and Mr Montagu Norman, the Chairman of the Bank of England. There are many hoping that the conversations will result in a stabilisation agreement, as it is believed that President Roosevelt is not inclined to inflate, while Mr Norman considers that a general adandonment of gold would be' extremely dangerous.

APPREHENSION IN EUROPE DISTURBING QUESTIONS AHEAD LONDON, August 27. Referring to the currency confusion the “Telegraph” says:— Tbe pound and dollar last week were each left to find its own level, the Exchange Equalisation Fund having apparently suspended activities, in holding ster’irg. That was the only possible explanation for the sharp advance on .Saturday of the franc, mark and other gold currencies. They Iw? • - M -t- t I N s un' l In: K lie ( , i 'iic- nee . T'i c ,s -Iro.dv ui h « r • 1 1 apprehension in Europe at what this potends Th t ! allegiance of France, Germany, Holland and Switzerland to the gold standard will be tested by a race of depreciation between the pound and dollar. Unless thfi movement is checked, questions loom ahead to disturb Europe,