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The
Hongkong Telegraph.
136 PER ANNUM
FOUNDER &=+AĢ WEDNESDAY, SEPTEMBER 23, 1931. BETAX SOLE COFY 17 CENTE
13.800
FINANCIAL WAR AT ITS HEIGHT. Gold, Silver and Free Paper: Can Hongkong Aid Empire?
LOCAL DOLLAR AND STERLING.
MANAGED CURRENCY FOR COLONY.
H.K. MAN'S SCHEME.
THE WORLD has suddenly stumbled into a financial war with its nations split into three factions-silver, gold and free paper are currency adherents, whose interests diametrically opposed. The free paper policy focus of many minds in the last
is bound to win in the long run, but France and the United States will fight to the bitter end for the preservation of their gold value.
This is the conclusion reached by a local student,
The Bank of England, whose new structure is rapidly nearing completion, and which has been the
two or three days. The old safely simile still holds good.
Sunday's
of world economics, who has contributed much in Eclipse of
valuable and informative data to discussions of currency
and monetary problems in the last two or three years, Moon.
and who now comes forward with the suggestion that Hongkong should stand behind Great Britain, and
STERLING RALLIES TO G$4.20 IN NEW YORK MARKET.
BANK OF ENGLAND STRIVING FOR INTERNATIONAL PARLEY.
GANDHI AND RUPEE DECISION.
Sterling yesterday rallied in New York after opening below G$4.00 to G4.20 giving the pound sterling a value of about 17s. 5d. It is still hoped that Britain's departure from the gold standard will persuade hesitant Powers to agree to an international conference · on the malfunctioning of gold.
London, Sept. 22.
Announced that because Indians were not consulted regarding the decision to base the ruped upon gold sterling. Instead of upon a standard, the Indian Congresn would be unable to support, the measures requented by Sir Samuel Hoare,
The London Stock Exchange will be opened for business tomorrow morning as usual. This early resumption of business affords another indication of the calm. ness with which yesterday morn- ing's announcement of the deci.
Gandhi wald that while every sion to suspend the gold standard
thoughtful Congressman must has been received.
Throughout the country to-day sympathise with the British nation banking and other business propress his surprise and sorrow that present crisis, he must ex- ceeded on normal lines and there the decision was taken over the was a complete absence of excite ment.
ure
in the
should fix her exchange in relation to sterling. Similar DETAILS FOR VERin view of the changed shuation and just Indiana were not yet fit to be
action, he asserts, should be taken by other parts of the Empire.
movement in the Colonies.
EARLY RISERS.
Hongkong will have to be early antir on Sunday if it wishes to sen the total eclipes of the mason.
quiries.
Government and business head of the Legislature.
He was pained because the Bri- houses readjusting their ideas tish Government's decision implied the Ministers are concentrating on consulted on matters of the most the steps that may be necessary to vital importance. It was, in his counteract adverse effects.
view, proof of the Independent at- |titude of the Government of India, Sir Manecki Dadabhoy, the
Internal Soundness.
on the gold standard. Foreign
Neccяssory.
LOCAL BRANCH,
MANCHURIA CRISIS.
Poddar Bldg.
RUMOURS OF GRAVE DISTURBANCES IN HARBIN.
SOVIET AEROPLANES RECONNOITRING.
at
MYSTERY ENWRAPS the actual state of affaire in Manchuria at the present moment. There are rumours of a grave anti-Japanese disturbance at Harbin, and it is reported that large numbers of Soviet troops have crossed the border. Meanwhile, it is admitted by the Japanese Intelligence Officer Mukden that the strength of the Japanese forces has been brought up to 10,000 by drafting in the entire Kwantung Division, and five batte lions from the Chosen Division.
The Chinese repre- sentative at Gorieva told the League Council yes terday that hundreds of Chinese men, women and
re-
children were being killed. Viscount Cecil said that if the port were true, it indicated that grave events were occurring there, and he asked the Adachi, who, it is understood are Japanese representative. tiva countries at Ganaya.. to hasten the Tokyo
Dr. Alfred Sza (left) and · Baron
presenting the case for their respec-
Government In giving full information to the League regarding the true state of affairs.
JAPAN CRITICISED AT GENEVA.
Australia already has a "managed" currency, a decision achieving the same thing has been announced
The eclipse will given fairį The essential soundness of the groat Indian Industrialist, said by the Government of India, but South Africa and conditions, be completely visible internal situation is fully re-that In the circumstances, he Canada are adhering to the gold standard. The in Hongkong.. This assurance cognized.
thought the Indian Government The country's resources are had done the only thing ther Canadian dollar, is however, being hammered in New was given by the Royal Obser-
vatory this morning, when a enormous and no
real internal could do. York, and fell yesterday to 92 cents. Canada may be Telegraph representative made on difficulties are feared. forced off the gold standard.
It is, indeed, becoming increas
Danish Gold Embargo. The eclipse will begin at 3.00 ingly clear that it was the troubles These facts have induced our correspondent to a.m. on Sunday, and will end at of other countries that made it Government's departure from the The effects abroad of the British
Mukden, Sept. 22. the last few days occupied the recommend that the Empire stand behind Great Britain. one hour and twenty-five Impossible for Britain to remain gold standard, are shown in an Mujor" Usuda, the intelligence entire attention of the League
Officer of the Kwantung. Army, Council yesterday.. in her battle, and that Hongkong give a start to the minutes Inter.
Its characteristics will
announcement from Copenhagen be banks, nervous about their post that the Danish Government has states that the strength of the Washington is also taking a keen almost precisely the same as those tion, had been removing money de placed an embargo upon the ex-Japanese military forces in Mau interest in the critical situation. of April 2 last, with the beginning posited in London and converting port of gold, while from Brussels. churia is now 10,000, including the Representatives of Japan and CURRENCY AND METAL DEALINGS.
visible generally from the whole it from sterling into their own it is learned that drastic measures Kwantung Division, and five China were in conference yester.. The Hongkong dollar was this morning quoted, on demand, of the eastern hemisphere and currency. In this way. forty three at 1/04, but inter-bank business was done at 1s. 1.5/16the Australia, excluding the north-million pounds was withdrawn into chuck the slump in Belgian battalions of the Chosen Division. day with officials of the State
securities include the formation and 18. 1d. The' market is still uncertain. Business hastwestern part of Asia. The ending three and a half days at the end of a consortium of leading bunkers, be seat to Tuonan to-day to proteclissued.
He said that troops will probably Department, but no statement was is visible from the same region, of last week and as the pace WAS been done in Shanghai at 18. 5%d, sellers, later dropping to excluding Australia and north accelerating, the suspension of the backed by a thousand million Japanese residents,
Lengue Discussion. 18. 5 1/8th. Silver WAS up Id. in London yesterday, cast Asia, and Including the Gold Standard Act became im-rance, to support the market, if
There are rumours of a
Viscount Ceell (Britain)
Wan advancing on speculative buying. New York prices dropped eastern part of South America.
serious anti-Japanese out- slightly. The price of bar gold in London has advanced from
the keenest critic at Geneva. In The moon rises in Hongkong at
break at Harbin—Reuter.
the morning session, he urged £4. 4. 94d. to £4.19%. 7d.
5.38 p.m. on Saturday, The point of the dise that will be first
The United States Government.
Shanghai, Sept. 23. that all troops. should be with Throughout the days of crisis, obscured is rather above the ready sympathy and assistance in of opinion that the suspension to hant concerning the despatch and reminded China and Japan of
says a message from Washington, Conilleting reports have come drawn to their original positions. middle of the left hand side, and was forthcoming from France and of the gold standard in Britain is of large numbers of Russian their treaty obligations. FIGHT ON RIGHT SIDE. the point of leaving slightly America where three quarters of likely to improve economic candi- troops into Manchuria.
Viscount Ceell was later one of higher above the middle of the the avaliable gold supply of the tions in Britain and elsewhere.
a group of leading delegates who- right hand side.
world is held.
The move is regarded more us
Unconfirmed Chinese reports discussed the issues with the The complete time table of the The Bank of France did not with the adoption of a a variable stand-
allege that minor brushes have},]
Japanese and Chinese representa- in Hongkong វ៉ន
occurred as draw any of their money deposited ard than the complete abandon-
Russlan
tives advance guards and the outlying Senor
priyately. The others were in London. It remained here in- ment of the gold standard, and
Lerroux, the Moon rises at 5.38 p.m.
Spanish Japanese troaps, on tuet. Saturday.
one effect in likely to be stronger Moon enters penumbra at 0.41 effect of the change was the delish and American exports.
Foreign Minister, Dr. Curtius, One immediate and inevitable competition between certain Bri- Other reports suggest that the German Foreign Minister, and Rusalan and Japanese Govern Signor Grandi, Italian Foreign hours on Sunday",
preciation of the pound sterling.
An initial flurry, in which stocks ments have come to an
under-Minister. No less inevitable is some disloca-were very irregular, with a down-standing. There is not likely to tion of foreign trade and finance, ward tendency prevalling, soon be fighting between the countries. the dimeulties of which will be changed, and the composure of Soviet aeroplanes
have adjusted by the countries con-
the market closed distinctly easy. observed over the Chinese Eastern eerned.
Starling, which started slightly Rallway as far down na Harbin.. lower than yesterday's figure of 405 later joined the upward mora- ment and closed at 420, equivalent to 17/5 gold standard.
Enquiry of a local banker re-consumption and, most important of garding the proposan! outlined all maintaining her foreign trade above elicited a reply that helwith a favourable balance. would like more time to examine The drop in her exchange should,
it, but it was possible that it would for a time, nugment exports, but serve a uneful purpose. Unfor-the danger is, that with the rest of tunately, however, it is more than the world on gold and silver, her likely that the most influential of foreign tradę may collapse, Hongkong nanelers would dragi
up the old argument that Hong- kong is too closely allied to China
to depart from the present basis
The Argument.
Self-Interest.
Enters the umbra at 1.51 am. Total eclipse begins at 3.6 am. Ends at 431 a.m. Moon lenyen υπείται at
5.42
Leaves the penumbra at 0.55
Personally, I see un possibilityjum. of getting back Lo the gold standard without further credits a.m. from France and U.S.A.. and it is The communication our questionable whether they will correspondent (who signs himself see any self-interest to be served; "X") is appended:
in assisting in the recovery of a MR. E. D. SIMON GETS
frf
The world has suddenly stumbled country that, with her military into a Goancial war, with its na-and ival power, is capable of tions split into three factions-frustrating their political ambi- silver, gold and free paper currency tions, and that is after nih adhorenta-whose interests are nothing more than a competing diametrically opposed.
banker and workshop, with The free paper policy is bound to natural resources to exploit. If an unfavourable trade balance has
GOVT. POST:
LIBERAL BELIEVER -- IN TARIFFS..
perative.
France Helpful.
In well-informed circles, the view in held that ons result of the pre-
·sent crisis may be a change of opinion among some of the Powers
which hitherto have shown no sym.
pathy, with proposal which for the past twelve
Washington Calm.
between the
boon
Appeal to Both.
The main purpose of the private discussion was to drate up the torma of the appeal to be trans- mittted to the Japanese and Chinese Governments, requesting both
siden Chinese officinis in Nanking are ikely to aggravate the situation.
to abstain from sil acts
Chinese Alarm.
The Canadian dollar was weak beginning to grow gravely alarm When the Council reassembled and closed around 92 conta to the fed at the Joint movement of, months American dollar-Reuter and Bri. Japanese and Russian forces into at 8.80 p.m. the Japaness repre- been favoured In England, for fish Wireless.
Manchuria, fearing that this may sentative fully endorsed the noble sentiments expressed by Viscount securing by means of joint scilos,
ultimately lead to a division of the Cecil during the morning, “following, an international confer- ance, a rumèdy for the situation
caused by the preses) unequal dis---INDIAN-FEDERAL
(ribution of the world's supply of
win out in the long run, but Franc forced her off the gold basis how
London, Sept. 22. Mr. E. D. Simon, Liberal M. P. and the USA. will fight to the
The Bank of England has, In this bitter and for the preservation of can she, without outside aasis- for Withington, has been appoint-connexion, been making -every their gold value, and unlare the Old tance, hope for trade recoveryed Parliamentary Secretary to the, affort to promote co-operation with Country has all the backing avail with her international exchange Ministry of Health.
a viey to finding a remedy and able from both Home and abroad, rate no longer synchronising with Chairman of Henry Simon, Ltd those efforte will be continued, there_la_a possibility of the whole
and of Simon, Carves, Ltd., Mr. while the Government will con- British Empire crashing into bank those of her former markets? raplay:
From now on, commercial securi Simon is n former Lord Mayor of tinue to emphasise the urgency of It is no uso shutting our every will demand that gold adherents Manchester. He has taken a such a stop
on keoh and netive Interest in the trude, exclusively with others
to hard facts, Britain has been the same currency basis, and if slum problem, whilst last year he Cost of Living forced off the gold standard-Britain is to retain any foreign came into prominence by declaring nothing voluntary about the move markets at all, she must. either himself in favour. by londing too freely since the War
LEGISLATURE.
DISCUSSION ON ITS
· COMPOSITION.
London, Sept. 22,
spoils! It is stated that over a
His Government, he said, was 100,000 Soviet troops are in close most anxious to respect the proximity to the Chinese-border. Briand-Kellogg Pact. Ressha.
Russo-Japanese Talks,
Japanese Interesta.
He referred to the big Japaneso Moscow, Sept. 22.
and the enormous The fighting in Manchuria was Japanese interests In Manchuria,
population the subject of a long conference and said that thoTM - Japanese The Federal, Structure Com between the Japanese Ambasador, Government was most desirous of mittee of the Round Table Con Mr. Hiroto and the People's affecting a settlement of hundred ference to-day concluded, ita dis- Foreign Commissar, M. Litvinod outstanding questions concerning cussion or the relations between M. Litvinor invited Mr. Hiroto China and Japan, all of ■ disturb-
While it is anticipated there and composition of the Federal Geneva Regrets.
the two Chambers, and passed on to 200 him. The results have not ing character. to consideration of the strength been disclosed-Router.
Chinese Complaint. will be some rise in the prices of commodities in Britain, it is be, Legislature, including the propor
The Chinese Frepre eved the rises will not be large, tions to be assigned in each Chain and the Government will, so far as ber to the States and British
depectively app Most of the Chinese bakingas possible, keep a watchful are to pre- India houses and banks in Hongkong are vent profiteering Wheel Bolt Hongkong can start off by put flying their fags: at half mast Aulki mutation was created ting her silver reserves, at „the Home Goretamente disposat and to-day-The explanations that (Continued on Page:1) today is Humiliation Day da
Katinazion, with the Malesurle erial
in developing her foreign markets, persuado, or, if necessary, forde British Wireless, and by an unfavourable trade bal other countries into stabilised
ance resulting from her failure to free paper or "managed" currency achieve that ond.
Her only hope now lies in the pre- vantion anation, preserving a fatable commodity pricò lavel to ed
production for interdeis
na it, in-now. called”.
tarlifs
Geneva, Sept, 22 Dr. Alfred The fafiura of Japan to supply the fact that As the League of Nations with fuller the popula
that the information regarding the move, Instruction urthala has ac- menta" and notions of Japanese jym
oin the troops in Manchuria la advertaly
British, commented upon at Gene