MISLEADING ARTICLE

Taranaki Central Press, Volume IV, Issue 403, 9 April 1937, Page 5

MISLEADING ARTICLE

AMERICA AND GOLD COSTLY TO INVESTORS Weakness Infects Continental Bourses. Press Association-—Copyright. , Received) 9.36 a.m. London, April 8. The future of the American gol® policy is still anxiously debated, in tlhe City, where innrves are so Ufidly shaken that the wildest stories have found at least some ready to. believe them. The Daily Telegraph’s City Editor considers that the report that the United States intended to cut the buying) price of gold from its present level by 35 cents par ounce Pn order to restrict tbe present 'influx from Russia, originated thiough a misleading article in a New York newspaper, but vVh^teve r the origin it has been costly to investors. Prices in all sections were marked down, sometimes sharply. A similiar weakness ha® infected the continental Bourses, notably Paris. Wall Street itself had one of the blackest days on record. A message from New York states: Inquiry among banks discloses that none is refusing to accept consignments from correspondents: abroad or to advance credits against ship, ments. One of the banks engaged in purchases in London on its own account has decided to discontinue this, due to the profits being too small to justify the risk of a possible Treasury change. Two others adopted the same policy several weeks ago. The Stock Exchange, due to the gold and other rumours, experienced one of its worst breaks of the year. Leading stocks, dropped frqpi one to six points, steels, coppers aad motors being most affected.