1949-09-22 — Page 9

THE CHINA MAIL, THDAY, SEPTEMBER 22, 1945.

ANXIETY INCREASING AS AN AFTERMATH OF DEVALUATION Rush For Tough Struggle Ahead

Of Attlee Cabinet

Gold Repeated

London, September 20.

London Stock Exchange were paralleled in Johannesburg and Sydney, where buyers clamoured to buy gold shares from reluctant sellers.

UNREST ON LABOUR FRONT

London, September 20.

Today's frenzied scenes in the The snowballing impact of the cut in the dollar value of the

Pound caused increasing anxiety in Britain today. The Labour Government begon closing its ranks for the fight of its life. Worker unrest, which had been smouldering for months, intensified against the wage freeze policy of the Attlee Government.

Fashionably-dressed. women, scribbling notes on cigarette p30- kets, dashed in and out brokers' offices as gold shares on the Exchange leapt upwards. Nine-tenths buyers were disappointed.

the of

would-be

The normally staid and sober air of the London Stock Exchange dissolved into frenzy as prices of stocks and bonds swirled toward devaluation levels.

Quotations of some gold shares for a number

of exporters tc

were nearly triple the afficial ex- raise their prices in terms of change closing price of Friday.Sterling so as to earn something In Sydney, 20,000 shares in 180, rubber and in shares follow-like the same amount as previous- different gold companies changed hands, with demand growing Rs news came in from abroad,

The Stockholm Exchange also hed, a boom.

Top-hatted brekers jostled with hundreds of clerks on the crowd ed London Stock Exchange floor today in the City's largest "gold] rush since Britain went off the, Gold Standard.

Gold shares rose an average of

ed the trend.

The Cabinet is reliably report- ed to be planning an emergency session of Parliament, now ad- journed.

This has been demanded by the opposition leader. Mr. Winston Churchill, for a full-dress airing of the whole situation.

Both the House of Lords and the House of Commons are ex- pected to be reconvened today. probably for about three days.

The Government is expected to five shillings in as many hours put out a three-line whip, the when the Exchange doors opened most urgent possible Party call for attendance and voting up ment's devaluation of the Found Port by its members in Parlis-

holiday that the British Govern-

after yesterday's tallowed

Sterling,

At 3 p.m. they were cloding firmly at ptes which sustained the five shilling increase,

Gold shares on the Johanes burg Exchange increased in value by £20,500,000 in dealings today.

The Bank of England con- firmed today that the new gold parity is 250 shillings per

A spokesman explained that Efter devaluation

Bank the estimates that £12:10:0 have the

ment.

There

Labour Revolt?

was some

speculation that Mr. Churchill may propose

15," a Board statement said.

Word Of Caution

goods,

It cautioned, however "In certain ranges of America will require reductions competitives conditions in North

in dollar prices, especially where reductions in the dollar price of Sterling area raw materials leads lower manufacturing costs in North America."

COD

Scotch whisky, which mands a ready sale in the United States. is one of the experts whose price in Pounds-is ex- pected to rise.

About the only good news for the average Briton in the field of devaluation was the word that Canada is devaluing its dollar.

a motion-of- censure.-It-is-no! This means that the price of a

likely to be carried unless large pound and a half loaf of bread sections of the Labour Party re- may go up by only a penny. bel or abstain from voting.

The Labour Government origin- there. ally, estimated that the increase But the danger is sections Large

of Labour would raise the loat from four rank and file are fretful over pence halfpenny to six pence, an devaluation's promise of higher increase of three halfpence. costs of living and the Govern- ment's wage policy.

American Confidence In Sterling

New York, September 20.

Confidence in "Sterling at its devalued rate of $2.90 to the Pound sent the price up to one cent above the official rate for future delivery on foreign exchange here today. This was the first time since

1947-... February 13, when Sterling for a time was convertible into dollar-that its rate for future delivery

has exceeded the official price. -Reuter.

Halfpenny Saving In Bread Price

MALAYA FIXES RULING LEVEL

PRICES AT

Kuala Lumpur, September 20,

The Federation of Malaya has ordered the freezing of wholesale and retail prices, to become effec- tive from September 21,

Prices will be frozen at the level existing on Septem- ber 17 before the devaluation of Sterling and the subsequent devaluation of the Malayan dollar.

Rubber is exempt from the or- Įder, which has been taken under the price control ordinance of 1940.

The freezing order is operative! for a period of 14 days, but can be extended if necessary, said |the Federation, government

nouncement,

an-

BRITAIN. PAYS IN STERLING

London, September 20. In a surprise move last week, South Africa took repayment, in Sterling, of all the remainder of her gold loan to Britain, it was learned here today.

The action has been taken be- cause there is no justification for any increase in the price of goods already imported in view of the fact that there has been no change in the internal purchasing Today's British Treasury re- value of the Malayan dollar, turn showed the repayment

Treasury officials confirmed The Government

stat

Britain paid off all the TE- are large stocks of consumer mainder of the loan last. Tuesday, goods and existing stocks of rlee September 13 are adequate until the end of 1949.

said

there

The

amount of the Town precise still outstanding and paid off last week was £12,463,125. There will be no increase in The original loat. in February the price of rationed rice, the last year was just under £80,000,-

£79.996,875, basic food of the 5,000,000 in-000-to be precise habitants of Malaya.

Of this, the difference of £67,- 533,750

had already been paid off in Sterling since last March

Treasury officials stated today!

No Justification

For Increases

CA

the repayment was entirely South African initiative.

This must have been highly welcome to the British authori-

ties

The

salda: announcement "There is no justification what- ever for any changes in prices and charges and, owing to the! Had it not been paid off last large stocks of all consumer week, Britain would have been. goods in hand, there will be bound at the week-end, under the plenty of time to find out terms of the gold loan agreement, exactly what items con to write up this debt in propor- sumer goods will be affected tion to the devaluation of Sterl- by devaluation and to what ing

extent before existing stocks need to be replaced."

cf

The announcement asked con- somers to report to the police any prices over the fixed rates. Violators are liable, ou

convic- tion, to a fine of 20,000 Malayan dollars.

A

London, September 20. Canada's 30 per cent devalun.

second wheat tion of her dollars means a half- the nation's Most of

Canada and since penny saved on the British stan- bring a one comes from

the British Govern-dollars. that country, is now cutting its dard loaf, If the Government should be dollar by 10 per cent, the price ment announced tonight. same value as an ounce of gold. defeated on such a motion, trade-of wheat all-not go up as much

fixed in accortion calls for a new general eler as had been expected in

tion. In the confusion and of the devalued Pound.

The rate was dance with the new-dollar-pound

rate Twelve pounds 13 shillings now equals 35 dollars.

an:

The Bank said this does not mean that it will pay 230 shil- lir.rs for

comed of gold. Actually it will pay only 248 shillings. The alference of two shilings covers the costs the

gola!

Bank entails in assessing

and making its purchases.

sentment which have been the first reaction to the cheapening of the Pound, a general election is the last thing wants now.

the Government

The British Press Association

said the Cabinet will probably meet on Thursday to decide on its strategy.

Meanwhile, a spreading slow- down broke out among workers on the State-owned railways who

In selling gold to the US, the are demanding a weekly Bank will collect in dollars attaise of 10 shillings.

the prevailing rate of $35 to an

Once-Reuter and

Press.

Asssociated

BUSY DAY-ON- SYDNEY 'CHANGE

Sydney, September 20. Over 20,000 shares in 18 dir- ferent gold companies changed hands on the Sydney Stock Ex. change this

morning, with the demand intensifying as news rises gold shares

JA

overseas came in.

Greater buoyancy was also re- ported in the investment market generally. Reuter."

Revealing Figures

pay

Cut In Prices

terms

The Government showed signs tonight of making big efforts to

ot stop the cost living from scaring after de vafuation.

It was authoritatively learned new price reductions in certain ranges of goods will be made.

conviction will of 15,000 Malayan

She would then have owed South Africa about £18,000,000 instead of £12,500,000---Reuter

U.S. TALKS ON BRITISH CRISIS

Washington, September 20. The Secretary of the Treasury, Mr. John Snyder, and the Foreign

||No freezing is planned by the Before the Canadian decision, Crown Colony of Singapore, Aid Administrator, Mr. Paul Britain's devaluation would have | Associated Press. _mised the price-from-41d-to-bár

The loaf will now cast Sid. Canada's action has lessened the increase in the Sterling cost of flour.

The Government announced to- night that millers had been in- deliveries of structed to restrict flour to their castomers until the new prices take effect next Sun- day.

The prices of certain goods, mainly clothing, are already due

Flour prices are affected in to fall five per cent from nex! Monday because of a Board of the same way as those of bread. Trade decision taken before de--Reuter. valuation was decided.

Workers in the London arek,; It is probable that this five per No decision or action will be 100,000 strong, have voted to pull cent cut will be extended to in- taken upon them until they have the slowdown into full effect at clude many household goods. been studied as a whole by Mr. It was also disclosed today that Attlee and his senior colleagues. midnight on Wednesday, clogging the London transport system. the Prime Minister had ordered

The economics called for by They hope that another 50,000 big cuts, to be made in the ex- elsewhere in the British Isles will pense of running all Government Mr. Attlee fit into the general fellow suit in some parts of the departments this year.

picture of domestic retrench ment which Britain's represen- country workers jumped the gun

tatives at the Washington talks on Monday and today.

indicated was part of her over- all plan for economic recovery. They' mainly concern the day- to-day administrative operation of departments.

The Board af Trade issued final figures today for the month of August, which showed how badly British sales to America

totalled

Retrenchment All-Round

Tribute To British Aviation

Cleveland, September 20. The Scripps Howard aviation editor, Max Cook, wrote today: "Britain's foresight in assigning several hundred of its best zero- nautical experts to let power re-i search and development early in t the war is beginning to pay off.

manufacturers were

"While United States engine kent busy turning out powerful reciprocat ing engines for both America kud Britain, the British 'jumped the gus' on jets with an eye na post- Recent ad- war air supremacy. missions by the Civil Aeronautics

·Board before the Senate Commit tee indicated that British jet power airliners would be chal lenging American manufacturers within two or three years.” -

Minister's order The Prime

recent supplements a

Treasury call to all departments to cut had fallen off before the decision next year's budget estimates so to devalue was reached.

as to produce a saving of at least Exports to the United States £150,000,000 in 1950.

The Governinent has repeated- He also said that, while the Batavia, September 20.

£$,300,000, some The savings

from these big ly indicated, that economies in United States military jets were The Foreign Exchange Institute £500,000 less than in July cuts may enable the Government administration would not affect being produced rapidly, only two cf Indonesia announced tonight

the British armed forces or the airframes had been developed for Sales to Canada were £5,700,- to reduce income tax.

of her social service commercial use Consolidated 000, off £1,000,000.

Minister's that 70 per cent of foreign ex-

The Prime

order operation

Vultee's Convair twin-engined The Board of Trade advised was circulated change earned by Indonesian ex-

privately some schemes.

There is no official estimate of transport and the Navy's 180- porters to Singapore may in British exporters today that it time ago and all Ministers were future be retained by exporters has no objection to their raising asked to report to him personal the net saving which may be pos- passenger Lockheed constitution, constructed with an operating from East Sumatra prices if they have an assuredly. before the end of this month.sible this year as a result of the which were ports where

dollar market

Some of the reports are alreadyPrime Minister's order.--Asso-eye to jet power installation

United Press. branches-Reuter.

"It

ciated Press and Reuter.

до banks have

may well

be appropriate in band.

Hoffman, met the Senate Foreign Kelations. Committee · today to discuss the British dollar Crisis and world trade.

told reporters he Mr. Snykier

Committee brought the

up to ciate on

affairs. fiscal The Committee chairman, Sen- ator. Tom Connally, said only that ECA operations abroad and world trade were discussed.

Mr. Hofman said he was not questioned on the recent decision enabling Britain to spend USS- 175,000,000 in ECA money for purchases of Canadian wheat- United Press.

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