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HONG KONG DAILY PRESS, MONDAY, SEPTEMBER 28, 1936.
FRANC DEVALUATION UPSETS
MARKETS
Foreign Exchange Rates Suspended
STIR CAUSED IN OTHER
COUNTRIES
Improvement In World Trade Expected
London, September 26.
Deva uation of the franc, though not coming as a surprise in London, caused dislocation of all markets as. owing to absence of foreign exchange rates, no basis was avaliable wherein to transact business in" commodlites...
Foreign exchange experts opine that the uncertainty sur- rounding new exchange levels will probably persist until the steps proposed by the French Cabinet are endorsed by Parliament. Therefore it is considered likely that the present suspension dealings on foreign exchanges will be extended.
of
The general market sentiment is decidely bullish "because firstly the new dollar-sterling rate is expected to render sterling secondly, cheaper, with
re" in commodities, and consequent France's 'move is believed to result in a fillip to world trade.
112
MARKET INDICATIONS
Repatriation of French capital
is unlikely to assume large 'propor- tions, while uncertainty as regards the ultimate level of the franc persists.
+
On the other hand some selling in gilt-edged stock on French ac count is expected on the theory that French interests are inclined to invest the fund thus freed in
should French rentes which
be
due for a rise once the benefit of devaluation is felt.
Other counters on the Stock Exchange anticipated an open. cheerful frame of mind;
Metal circles anticipate a mildly bullish trend.
While realising that certain liquidations en French account "are probable, it is pointed out that in the immediate future a general improvement in
world
DUTCH MONETARY POLICY
Difficulty In Maintaining
Gold Standard
Amsterdam, Sept. 26. Holland has not yet abandoned the gold standard. A communique clarifying the position states that
it is imposs ble to maintain the Dutch monetary policy unchanged following the declalon of the Swiss Government
forced which
the reconsider Dutch Government to her attitude as Holland is the only country in the world on gold and therefore tee's in the highest degree the pressure of rates of the exchange and gold reserves:
The Government is placing an embargo on gold in order to pre-
trade must benefiḥ prices of com-¦ vent the Netherlands from leaving *modities accordingly. "Reuter
ABOLITION OF DUTIES
Paris, Sept. 25.
||
Steps proposed by the govern~ ment to offset the alteration of the exchange, value of the franc will include abolition of duties on certain commodities. petrol and sugar.--
such as
BERLIN PRESS ··
Berin. Sept. 27. In striking contrast to the calm- ness with which the news of de- valuation was received inau thoritative financial quarters, feverish excitement is shown in the press whose headlines would suggest to a casual reader that France is on the verge of financial and political chaos. Here are 32 few typical headlines: "Berious Anxiety in France: Great Popular Swindle Revealed: Wage Increases now Worth'ess.”— Reuter
COMMUNIST ATTITUDE
Bordeaux, Sept. 27. Communists, while still opposing devaluation, decided to continue to vote for the Government- Router.
SWISS FRANC DEVALUED
Measure To Assist Stabilisation
Berne, Sept, 28.
the gold standard.
Further particulars Government's intentions will announced on Monday.- Rentir.
of
the be
EXCHANGES CLOSED
Amsterdam, Sept. 26. It is officially announced tha thaintenance of the gold standard by the Netherlands is no longer
·possible." The Dutch Stock Ex- changes are closing on Monday and Tuesday to complete My understanding reached between the Bank of Netherlands and the the Government to put an ex- barge on the export of gold from September Reuter.
WORLD ALIGNMENT IN CURRENCY
Situation In European
Countries
wwwww..com
London, Sept. 26. There appears to be that every indication that France's decision to devalue the franc may lead to a general world aligment in cur- repcies. The figure
to which Switzerland may devalue her cur. rency is a secret, but it is believed to be similar to that of France.
Belgium; while adhering to the monetary pact is maintaining her currency at its already devalued level.
J.
Debus, Prench Foreign {"Minister, addressing the League Tumbly on Saturday, auertul that it is primarily the affair of the League of Nations to quarante The scurity of its members,
SILVER MARKET
(From Our Own Correspondent),
London, Sept. 26. Lonion siver prices to-day were up 1/4 as follow:-
Sept. 25 Sept. 26
19-1/2
18-3/4 19-1/2 19-3/4
Spot
Forward
BRAZIL AFFECTED BY FRENCH PLAN
All Monetary Transactions Suspended
LONDON PRESS NEW MONETARY TOLEDO CAPTURED
VIEWS
Devaluation. Move
Welcomed"
Sek. Lonaan, sept. 26.1
The
AGREEMENT
French Policy Supported
ALOE
24 #30 Paris, Sept. The devaluation. of the Iranç The French Cabinet has ́xu- was announced too late for many thorised the pubtention of of the papers to comment.
statement explaining the Times? says that the agreement monetary agréement between may prove to be the first step of France, Oreat Britain and the several towards the ultimate sta- United States, this being given bilisation of the world's currencies out at Paris. London, and Wesn" Its importance, therefore, must ington simultaneously at 2 a.m. not be understimate, even though to-day. A the same time a new the ultimate goal is still far off bill was announced, which, es
the present understanding tablishes the new gold value of contemplates only an effort to the franc The pill also provides maintain approximate currency for a monetary stabilising fund of stability between these nations.
10,000,000,000 francs. But these nations hold the key to stabilisation. a {\tleg suc- cred in preserving stability be- tween
and
themselves there is good ground for beleving that the other nations will be encouraged and a sisted to achieve stability tea.
com-
The agreement arrived at be- tween the three countries is b part as follows:-
"The French Government “has' entered into an zreement with the Governments of the United States
and Great Britain in. A mutual desire to preserve peace conditions and bring about the
most favourable for the re- establishment of order in inter- national economic relations and the development of welfare stand-
The risk of destructive petition to reduce the purchasing power of currencies is avoided, and an important step has been taken towards promoting the restoration of sound monetary conditions.
The "Daily Telegraph" "says that at arst sight the new experiment ards in the world the improve in". International to-operationment of living conditions among
being nations
dependent seems likely to be as welcome as the it was unexpected.
The "Financial News" says that
thereon.
BY INSURGENTS
STEALTHY ADVANCE
BY NIGHT
Alcazar Inmates Receive Help At Last
Lisbon, Sept. 27,
After a big fight yesterday on the Guadarrama' bridgehead, five miles from Taledò, forces or General ... Varelas, Insurgent › leader, advanced stealthily at night in blinding rain and at dawn the column of Moorish troops and Legionaires ·got within two milies of the city,
The insurgents pressed forward in the morning and by 10,30. they were reported to be within sight of the streets of Toledo.-. Renter.
• Landon; Sept. 27. Insurgent wireless stations daim that they entered Toledo and re- Leved the Alcazi: defenders after putting the Government troom to Bight- Beier.
NEW CATALAN REGIME
Madrid, Sept. 28.
A new Catalan, Government on a wider basis, formed in Barcelona under President Luis Companys
"All take this opportunity to de-consists of three Republicans. three Communists, four Socialists and M. Leon Blum has kept his pro-clare that the policy carried on
of Trade Union mise to devalue only as part of a during past years will continue, four members vider alignment of the leading the important aim of which is to organisation.
This is the first time that Trade currencies. The concessions he maintain the greatest possiblę ba- has obtained from London and lance of international exchange Union representatives have been Washington are more than ample and to avoid 'destroying this ba-
included in the Ministry.. "We have long regarded de lance through: American or Brl-
Luis Companys will remain Pres. valuation of the franc as inevit-tish negotiation. The French Gov- Įsident of the Generalidad. able, and have always taken the ernment shares with the American | Reuter view that when it came it would and British Governments the con- ibe beneficial. Latterly the de-viction that the continuation of lence of the franc had almost be this polley serves the general alm come a fare: M Blum's decision towards which each Government should not be regarded as anything | is striving. but welcome and better late than ex- never."
Ro de Janeiro, Sept. "27. Al. monetary transactions, cept chose absolutely essential, Reuter.
were suspended til Tuesday.
It is felt that the devaluation of
the franc may ental modificationDELBOS SPEAKS
of the official quotation for the mitrela-
Kester.
PLAN WELCOMED IN WALL STREET
Brisk Rise On Stock Exchange
AT: GENEVA
French Point Of View Presented
Geneva, Sept. 28. The first speaker in the League Assembly this morning was the French Foreign Minister, M. Delbos. In the course of an im- New York, Sept. 28.
portant speech he stated that Wall Street hailed the French there was no sense in international ́devaluation plan as a definite and co-operation unless every nation constructive move, and the New possessed the right of self-deter- York Stock Exchange, the only mination and was secure against Important world secartes market any foreign interference in its in- was open to-day and rose briskly.ternal affairs, and, above all, any
New York banks like those in attack.... London and other principal cen-
+
Opposing national philosophies tres suspended dea'ings | with | threatened to divide Europe into foreign exchanges for the week hostile came and the dangers of end.
such a misation could not be A way of Leading commodity markets declared kudly enough. were" virtually nnaffected, and escape from this Altuation, which bonds only simple-minded people could dealings in foreign dollar were practically at a standstill regard as unavoidable, was pro- Reuter.
MR. MORGENTHAU'S DISCLOSURE
Russian Bank Sells Million Pounds At Any Price
vided by the League of Nations, where all national sentiments and traditions, all social and cultural forms, were represented.
"
OTHER POWERS AGREE
"In the conviction that this co- sired stabilty tannot be main- tained without the previous re-
establishment of a permanent ba-
lance between the various econo- mic fields the French Government has resolved to propose to its Par Mament a bill for the adjustment of the currency.
The Governments of the United States and Great Britain have endorsed this decision in the hope that such measure will bring about a firmer foundation for the stabilisation
of international economic relations. The Govern- ments of the Unites otates and Great Britain" declare their ir tention to prevent es far as it is in their power to do so any dis- turbance of the new monetary foundations brought about through this measure.
"The French
Government, like the Governments of the United States and Britain, la convinced" that the success of the aforemen- tioned policy is dependent on the development
of International trade.
CO-OPERATION SOUGHT
“The French. Governinent con- alders it highly important to re- duce gradually the existent con- tingent and monetary control sys tems, with a view to abolishing M, Deibos declared that the day them entirely. The French Gov- before he heard. with emotion the ferment, as well as those of the speech of the Spanish delegate. United States and Great Britain, the Foreign Minister. Senor. del
`wishes and requests the co-opera- Vayo. The French Government, tion of other nations in carrying however, was obliged to support out the policy explained above. It the policy of non-interventior, in
takes for granted that no nation recognition of the dangers" pre- will make an attempt to hinder the efforts of the French, British An interesting sideight on the sented by rival "Intervention, in
the form of delivėlės" of
and American Governments to new monetary agreement was re-
bring about the re-establishment. vealed by M:. Heury Morgenthau, and the unavoidable consequences Treasury Secretary, no an- of incidents which would inevit of more stable economic relation." nounced that the Falted States ably have occurred.
-Transocean News Service, purchased to-day about £1,000,- 000 offered on exchange markets by the Soviet Government.
Washington, Sept. 28
arms,
EUROPEAN-PROBLEMS Turning to other European prö- biems, M. Delbos stated that the
Mr. Morgenthau sald that how Locarno Treaty was repudiated by the agreement weking stabilisa- | Germany, and that the crisis
· Despite the official intimation of | tion invited the co-operation of which began from that date was
Holland to remain on the gold standard, and in view of the heavy outflow of gold from Holland
Cabinet will meet on Monday to Reuter review the position.
A communique issued devaluing the, Swiss franc states that the Federal Council has taken note of the decision of the French Govern- ment to propose to Parliament the devaluation of the French frane of about thirty per cent. The situation in,
the Bwiss
Dr. Trip. Covernor of the Neth- National Bank is technically strong erlands Bank, declared that there and the gold reserve is such that was no reason for anxiety as the it could resist for a long time all effects of the devaluation of the attacks against the Swiss frane,trane were already discounted. but under pressure of the circum-Meanwhile, it is pointed out in stances, devalution would later be- London that if Holland devalues. come inevitable.
the situation will be ripe for an international currency conference.. Financial circles in Berlin state that Germany may devalue the mark later
Moreover, stabilisation attempts of the great powers would be facilitated if Bwitzerland followed France's example, and the Federal Counell, therefore, decided at noon to-day on devaluation.- Renter
FRENCH POLICE RAID
afternoon. The building was closed and the inmates taken into temporary, custody.
other nations. However, he not yet ended. Perhaps through "learned this morning that some.Its long duration solution had Hout Kong Dally Press" Special), one has been driving down" the become more difficult Netwith-
St. Jean de Luz, Sept. 21. to America, the question arises as pound on inquiries I found the standing the guarantees which re- to whether Holland will also align Russ an State Bank has given mained to her and the assurances The house in St. Jean de Lus her currency with that of the other orders to sell £1,000,000 ar the which she had received, France which has been occupied by the leading countries. The Dutch best which means any price. had sincerely participated in the Spanish nationalists for the re- gulation courier service between attempt to initiate a procedure France and Burgos, was surround- which should lead as soon as posed by French Police on Saturday sible to general discussion. She was sill prepared to enter into any agreement which would guar- antee the security of all the coun- tries concerned and would ex This action and a simultaneous clude any idea of domination or search of the premises was bon- -Londen, Sept. 25, encirclement. and thereby contri-ducted under the personal-super- A communtary on start of the oute to Faropean peace
vision of the Prefect of Police at England-Johannesburg Air Race "But we do not forget, de Bayonne. The reason given for will be broadcast from Portsmouth clared M Delbos, "that it is pri- this measure was that passports, Aerodrome it transmission 1 on marily the affair of the League of were being Issued from hers to of Nationalist ryme September 29 from 5:10 to 5.45 Nations itself to guarantee the Spaniards. am GMT. ipproximately on Gel security of its members, according pathies and
Equipment, was being operated. to the tams of the Covenanta”
Tranarian Deion Service.
Italy is reported unlikely to make -Any move ́at present--
Reutér
BROADCAST OF
AIR RACE
GSD and GSB
British Wireleın.
WOMAN ARRESTED
Madrid, Sept. 26. Rosario De Llano, the sister of the Insurgent general, has been arrested, and pleaded to be shot Immediately. Reuter
BILBAO BOMBED
Bilbao, Sept. 28. Over 100 bombs were rained on Bilbao from the air yesterday. The seat of the Civil Government was struck. All the available hose- pipes are being worked to stem the outbreaks of fire. Dead are still
being taken houses.- Reuter,
··
from the collapsed
AZANA SEEKS REFUGE
Buenos Aires...Sept. 28, It is learned that the Argentine Embassy at Madrid has reported that the President. Don Manuel Azana, and several other prominent Spaniards have asked for refuge in the Embassy.--. Rester,
SPANISH WARSHIPS
Paris, Sept. 26
;
AIR MAIL ACROSS ATLANTIC
German Lufthansa Programme
Berlin, Sept. 26. The German Lafthansa intends
to open the regular air mail ser- vice across the North Atlantic to USA. In 1937. Air mail matter from Berlin to New York will then be delivered 48 hours after· de- spatch in Berlin, according to an announcement by Baron von Gablentz
Chief Lufthansa.
the
It is however necessary that the Governments over whose territoty
· the hydroplanes"must pass, do not withhold their permission, Von" Gablentz further stated that American air experts had been greatly surprised at the perform-
ance of the crude oil motors, since it had been belleved that there motors were still only in an experi- mental stage. It had above al been doubted that distantes over some thousand kilometers tould be made in non-stop rights.
Referring to the two new planes being built for the servia across. the North-Atantic for the Luft hansa, Gablents stated it the radius or action of these chines would be even greater that that of the hydroplanes used in the trial flights- Tean izen New! Service
·MISSING AIRLINER'S
London, Sept, 28.,
The Post Office announces that a portion of the airmails for the England to India, Malaya and Australia services was aboard the Boadicea, which has been reported missing when crossing the Channel”.
The warships of the Madrid Government disappeared mysterice yesterday morning, com Qualy from the Mediterranean two prising correspondence posted in days ago, according to a message London up to about a a.m. yester
day, and in the provinces up to from Burgos, which adds that the warships sure on their way to Thursday evening: No registered correspondence for this service was North Africa, where they intend to
aboard the Boadicea. The bulk of break the 'Insurgent blockade of
the airmait for this service wak the ports of Bilbao and San-
despatched by other aeroplanes.- tander.
Reuter
Transocean News Service.
WARNING!
In the interests of all concerned, we would nouly the public that certain dealers are offering a 14 02, tin of Ovaltine at the same price as our 18 oz. tin This smaller tin has been imported from another" market, and is not the usual size-sold in Hong Kong...
We ask all Ovaltine' consumers to make quite sure that they get the correct tin which is easily distinguished by the following
tia is wrapped in a beff wrangCE. Both the tin label and the wrapper. bear
and Chineze wording, The weight of the contents is clearly marked on both label and wrapper. The wrapper bears the rdindt A BritishTM Produet London
OVALTINE
Often imitated-never equalled
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