GRAVE PROBLEM

Waikato Times, Volume 119, Issue 19904, 5 June 1936, Page 7

GRAVE PROBLEM

ELROPEAN CLRRENCIES. EFFECT OF FRENCH STRIKE. PANIC ON THE BOCRSE. United Press Assn—Elm. Tel. Copyright LONDON, June 3. Ner\'ousne.~‘s regarding Continental gold ('lll'l'r‘ncios has been intensified. largely owingr to the deterioration of the. i’rcnrh situation mnl the int-runs-ing strikes there on the t:\‘c ot' the So~ cialists assuming the government. The t'ranc to-day fell to 70:25 in relation to sterling—the lowest rate since August. 1934. The British Exchange Equalisation Fund is reported to have expended £1,000,000 to prevent depreciation, although it operated only intermittently. The American fund aiso operated to assist. the dollar. There is a panic on the French Bourse, where stocks are depressed. Shares in the Bank of France felt 200 frames. The flight of capital to Belgium and to America has recommenced. £3,000,000 worth of gold being rushed in motor—ears to catch the Aquitanizi for America. The Paris correspondent of the Times says the whole gold blue is 105ing ground. it is expected that .\t. Bium. Prime Minister cleet, \\'iil inau—gurate stringent currency restrictions hut. reject devaluation. A message from Amsterdam 503%" pressure on the g‘uiider has not been alleviated by a second increase in the bank rate within a week. The Nether—lands Bunk lost £0,500,000 worth of gold last week out of $100,000,000 worth. - PRESSURE AGAINST FRANO. RENEWAL IN LONDON. - (Oflictai Wireiess). RUGBY, June 3. There was some renewed pressure against the trans on the foreign ex—change market to-day, and sterling appreciated against gold currencies.