1936-09-29 — Page 9

2:

HONG RONG DAILY PRESS, TUESDAY, SEPTEMBER 29, 1936.

DUTCH EQUALISATION FUND TO

BE CREATED

Three Hundred Million

Guilders

PREMIER'S REASSURING

STATEMENT

Bill To Prevent Unnecessary Rise In Prices

Amsterdam, Sept. 28.

Dr. H. Colijn, broadcasting this morning, did not refer to devaluation of the guilder, though he hated that "d slight weakening of the gallder may he created.“

an

The Premier announced the creation of

Equalisation Fund of three hundred million guliders and the immediate n troduction of a hill to prevent rapid and unnecessary prices,

It is unofficially held in banking may be decreased about 10 per cent

rise in

cireles that the rullder

MANAGED CURRENCY

Dr. Colijn announced that Hol-

lund will adopt a

on

managed cur- 1 ency the lines followed in -England. He appealed to the Dutch people to keep calm and not lose confidence, in the Govern- ment which had the power to control the guilder in co-operation with the Netherlands Bank.

The extent to which the guilder

RUMANIA NOT AFFECTED

Finance Minister's Statement

will be devalued was not Indicat-Hong Kona' Daily Prem" Special.

This

rd in Dr. Colijn's broadcast. will depend on the eventual pro- gress of commodity prices,

The quiet, tone of the Premier's speech has made a "favourable im- pression in financial circles.

The Stock Exchange way closed to-day. Other markets were open, but they are only doing a restrict- euì business and only nominal quotations are available. Renter

al

"AMPLIFIED STATEMENT

London, Sept. 28. Dr. Colijn said that the Swiss deci- sion to depart from gold made it necessary for Holland to recon- sider her position. It was hard for Holland to abandon the proud position of being the only country to remain on the gold standard,

Bucharest, Sept. 28. Following a conference with the Fremler and other official person- ages. the Minister of Finance de- clared in an interview granted 10 the press that the Anglo-French- American would in no way affect Rumania since the present currency situa tion was in every way sufficient for home and foreign trade- Transocean News Service.

monetary agreement

An appeal to the Dutch people

|

MONEY MARKET ALCAZAR CADETS LIBERATED

EXCITEMENT

Currency Dealings

Resumed

CAUTION ON STOCK EXCHANGE

London, Sept. 18.

There was considerable excite- ment in the foreign exchange market when dealings were re- sumed In all currencies except French and Swiss francs and Dutch guilders. American dollars were supported when they opened at a rate of 4.95 and at noon the mean rate was 4.94 agains; Fri- day's closing level of 5.03-1/5. Other rates were adjusted accord- ingly..

to keep calm and not 'lose, con- fidence in the Government during the present financial uncertaiaty On the Stock Exchange week- was ished by Premier Colijn, end developments caused no un- who announced amongst | other | due disturbance and, on the whole, measures a bill to prevent rapid the markets welcomed the ex-

"und minecramry viar în prices.

| DEVALUATION

change decisions, although opera tors remain cautious, awaiting the opening of the Farts bourse,

British funds were generally marked 1/8 to 7/8 lower with War Loan 34 per cent. 7/16 weaker at 107).

PROPOSAL

APPROVED County Council new three per cent.

Trend Of French Chamber Feeling

SEVEN ABSTAIN FROM VOTING

"Hong Koor Valls Press" Special)

Parls, Sept. 28. The Finance Committee of the French Chamber approved on Sun- day afternoon the proposal of the French Minister of Finance, Vin- cent Auriol for devaluation of the.. franc by a vote of 20 to 12 with 7 abstentions.

It is significant that the two Communist

members abstained from voting, although the secre- tary-General of the Commur.ist Party. Thorez in a recent speech had said that the Communists would support the Government so as not to jeopardise the Popular

opposed to the devaluation

the situation and adopt special Front, but in principle they were neasures.- Reuter

ITALIAN BOURSES CLOSED

Rome, Sept. 28. Italian bourses will be closed

but the increasing pressure of to-day, to-morrow and Wednes-

gold holdings of the Netherlands day-

Bank would render it impossible to maintain the former monetary policy. Also the situation would give some people the opportunity ef securing profits in the future which would mean a serious loss

to the Government.

Yesterday's decision to impose a gold embargo meant that Holland will temporarily abandon the gold standard as in the 1914-25 period. The position must be faced and £ certain depreciation in the value of the gulider in relation to international exchanges is likely. The fight of capital and adaptation to price levels abroad must have a marked effect. It is desirable that capital which left Netherlands should return.-- Reuter.

OFF GOLD STANDARD

The Hague. Sept. 28,

Reuter.

Fre

LONDON MARKET OPEN

London: Sept. 28. Dealings place to-day on the foreign ex- definitely taking change market with the except tion of French, Swiss and Nether- lands

currencies. Gold dealings

are also open- Reuter

GREEK DECISION

The fact that the Radical So- cialist Archimbuad also abstained from voting appears

to signify that the Radical Socialist fac- tion in the Chamber will also re- frain from voting. when the bill comes before the plenary session of the Chamber. The Right Wing parties vote without exception against the devaluation of the franc.

In a speech defending the bill that with acceptance of the bill the Minister of Finance declared the present practice of erecting high cusoms walls would fall- Team

Newer Service

some outflow, of America's huge Athens, Sept. 23. gold holdings might be expected as The Bank of Greece has decid-a result of such an agreement. ed to align the drachma to ster- ling. The rate was fixed at 548 to the pound buyers, 550, sellers Senter's Bulletin · Service

SOVIET DUMPING

were

Gold exports regulations, at pre- only to countries still on a full sent provide for gold shipments

gold standard, as

France, Holland and Switzerland, although several exceptions were" made to a lasting monetary equilibrium be-- this rule. But if the restoration of action In tween the various economic sys- the Newtems is achieved, it is believed it

Paris, Sept. 27. A possible explanation of the Speaking over the radio this Soviet Government's morning.. Premier Colijn declared throwing £1,000,000 on that a bill providing for an Ex-York market yesterday, was made will be necessary to permit an or change Stabilisation Fund, such as to-day... had been set up by the majority

Dealing started in London

loan on the basis of" 3/8 pre- mjum, but quickly rallled to 7/8 premium.

Home Rails show an advance. French Railway Libs were strong, also Argentine Rails. German Dawes and Young bonds were bet-

ter.

In the gold mining section sub- stantial gains are recorded follow- lng the fixing of the price of gold at 1409. the highest since May | 2 About 427 bars of gold of an approximate value of £1,200,000 were disposed of British Wireless

PRICE OF GOLD FIXED

Higher Rate On London Bullion Market

Landon, Sept. 28. The price of gold was fixed at 140/94. on the London bullion market; a rise 2/111d.

This is the highest since May 2 when it was one penny higher..

N

2012

3. Richard Saudier remains Foreign Minister in the Coalition Government formed in Sweden.

SOCIALISTS

BY INSURGENTS

FURIOUS RUSH INTO

STREET BATTLE

"Fighting For Joy"

Telavera del Áreina, Sept. 28. Shouting "Via Espana!" and brandishing their rifles, the long-beseized cadets of Alcanar flung themselves furiously into the street fighting immediately they were liberated by the rebel force.

The taprisonment within the walls of the fortress seamed to have given them a fund of new energy and nothing could withstand the onslaught of these men who seemed to be “fight- ing for Joy.".

Most of the defenders had left the town before it fell, but the scattered groups of militia which remained werë harried by the insurgents with spasmodic fire until gradually their resistance was overcome.

AND FARMERS MINES UNDER FORTRESS

LEAGUE

Coalition Cabinet In Sweden

HANSSON BECOMES

PREMIER

(Hong Kong Daily Press" Special)

Stockholm, Sept. 28.

A Coalition of the Socialists and Farmers League was formed on Sunday in Sweden.

The Socialist Hansson is the new Premier, and the Foreign Ministry is likewise taken over by a Socialist, namely Sandler. The other mem- 'bers of the new Cabinet are:-

Westmann Nielsson

Wighorns

On the eve of their rescue the nationally; troops to report them- occupants of Alcazar drove of the | selves for military service. Anal desperate assault by the Reports received from Madrid Government troops.

state that the Red Militia which recently arrived from Barcelona refused to proceed to the Sierra front, part of them having al- ready returned to Barcelona.-. Transocepa Sewa Serven.

The latter also feverishly Eared under the Alcazar in a final at- tempt to blow up the fortress, but the arrival of the relief force frus- trated these efforts, although some mines detonated, blowing up one wall.- Revier,

FRANCO'S COMMUNIQUE

London, Sept. 28, General Francisco Franco issued a communique from his headquar- ters at Burgos to-day, announcing the insurgents had captured Toledo and rescued the surviving defen- ders of the Alcazar.

The capture of Toledo prema. turely announced previously, oc- curred or Sunday evening. The in- Justice,

surgents approached to within a ...... Defence.

mile of the clty on Saturday, Finance.

following a Berce battle at Bargas Social Affairs,

eight miles from Toledo, in which Education.

heavy losses were sustained on both Agriculture. sides. Forslund

Traffic, Skoeld

Commerce. Quessel and Levinson Ministers without portfolio:

Moeller

Engberg

Pehrsson

The new Ministers of Justice, Defence and Agriculture as well as the Minister without portfolio to the Famers

gest since exchange was control- Quessel belong

The increase is one of the lar- ed

League.- Tromanceum News Service,

Pantera Bulletin Sermice.

GOLD ON. LONDON MARKET

RUBBER INTERESTS-

WATCHING

Reserve As Regards Dutch Embarge On Gold

*Rubber

MADRID MANIFESTO

Madrid. Sept. 28. The Government has issued a backs-to-the-wali manifesto, de- claring the Insurgents are superior in arms and in the air "due to sup- plies from foreign countries, signi- fying bargains for our territory."

It states the enemy is making the greitest efforts to reach the capital and appeals to all to subordinate everything to save Madrid from Fascism." Router

DRETREAT CUT OFF

PLANES SHOT DOWN

London, Sept. 27. Fierce Aghing is still proceed- ing around Toledo, but, the actual position is obscure. The Rebel. forces claim to have relieved the Alcazar garrison. but precise in- formation is lacking.

It's learned from. Rabat. through an insurgent wireless broadcast that six Government aeroplanes have been shot down in the last few hours. Two were destroyed on the Avilia front and the other four in the Trubla sector of the Asturias front.

HOSTAGES SHOT

At St. Jean de Lus, refugees from Blibao state the Government has shot at leas§80 hostages and threatens to execute the remain- der of captives in its hands if the bombings continue

over

have been destroyed, with

It is reported that 150 houses. 100 victims, in yesterday's bomb- ing raids.

A that

Gibraltar message reports the Spanish » Government fleet from Malaga has

reached Blbao, where insurgent vessels have been blockading the port. but there is no mention of sea fighting....

FLOOD PERIL According to despatches from St. Jear. de Luz, Sept. 21. Lisbon, the level of the Tagus bas By skilful strategic manoeuvres, risen nins feet, following the Col. Yague succeeded in advan-opening of the reservoirs by the cing north of Tuledo, on the To-Government troops near. Toledo, ledo-Madrid road, thus outflan-

and reports from Abrantės state king the Red militia

whose

the plantations and low-lying retreat to Madrid is cut of except fields of a wide area are threaten- in an easterly direction. The final

ed by the floods..

The huge quantity of gold which came to the market to-day British Control is understood to emanated from private hordes, have absorbed the bulk thereof in an effort to prevent undue rise of sterling in terms of the dollar.

Subsequently, however, the Bri- tish authorities presumably un- loaded some gold to America, using the dollar proceeds to offer them foreign exchange on the Brokers generally opine, how-Transocean New Service.. market In order to keep the dol-ever, that the already favourable lar-sterling rate on an even keel.- Rester

(Earlier cable on page 1).

PARIS VOTING

Paris, Sept. 27. The Government's devaluation policy received a majority of eight votes wien submitted to a meeting of the Finance Commission in the Chamber of Deputies to-day.

The Sucialists and Radical Socia- lists voted in favour, the Commun- ists abstained, and the Centre and Rightist groups voted against the measures.--

Beuter.

DUTCH INTENTIONS

London, Sept. 28. interests at, present maintain a somewhat reserved at- titude as regards the Netherlands embargo on gold exports pending further study of the issues.

outlook for rubber, will be ma- terially assisted by. probable worldwide expansion of trade, but It is realised that the Nether- lands action brings to the fore- front the native production ques- tion, and the thought of a some- what substantial increase of ex- port duty on ́native rubber must be made, thus lending added in- terest to to-morrow's Internation- al Rubber Restriction Committee's meeting.-- Reuter.

BLUM'S FIRST VICTORY

1:

Occupation of Toledo and the libe- been captured for 68 days. 18 ex- of the Cadets that have

ration

pected at any moment.~~

At Geneva the Spanish Foreign Minister has handed the League of Nations secretariat a memor andum detailing alleged breaches at the arms embargo in favour of the insurgents. The memor- andum states that not only arms and munitions, bat, even

aero- planes and tanks have been sent to the- reba's through Portugal.

CALL FOR SERVICE

Burgos, Sept. 27 General. Mola arved a mobila. tion order requiring all men be- tween the ages of 20 and 24 with- In the territory occupied by the 'Reuter.

NO DEVALUATION OF REICHSMÄRK

Statement By Finance Ministry

Koenigswusterhausen,

Sept. 27.

NEW WORLD RECORDS:

Olympic Steeplechase Champion's Feats

Helsingfors, Sept. 28.

gerly movement of gold between of countries with devaluated cur informed quarter, that a

it is reported in a usually well- the countries participating in the rencies. had been presented to has been going on between the facilitate the adjustment of inter- battle stabilisation agreement, in order to Parliament by the Government British and American Treasuries rational trade balances. The Exchange Fund to establish over the future relative value of stabilisation of the guilder will be the pound and dollar. The Bit Secretary of the Treasury, to-day Mr. Henry Morgenthau, the 300 million guilders.

tish favoured an increase in the conferred with President F. D. The Preinler declared that the present value of the dollar to Roosevelt, presumably concerning Dutch Government had been forced about $4,70 to abandon the gold standard in Americans. on

to the pound; the the formation of the Treasury's

the other order to prevent the guilder from maintained that the rate should Reuter...

The Hague, Sept. 27. hand, policy respecting gold exports-

It is learned in reliable sources becoming the subject of inter- not be lower than $495. It is

that the Dutch Government in national speculation.

believed a compromise will be

SWISS MEASURES

tends to adopt the British system Holland's decision, the Premier reached whereby sterling will d

of a managed currency, divorced declared, was above all due to the tuate between $4,80 and $4.90, įr

Berne, Sept. 27. The Federal Council has request-tion ranging from 15 to 20 pet from guld, with possible deprecia- devaluation of the Swiss franc,

Presumably the Soviety authoed the National Bank of Switzer- declaring that though the goods rities feared

M. Leon, Blum won his first address on the finance policy of times of 35 mins. 46 secs, 40 cent. a reduction in the land to fix the gold value of the imported from abroad would un-dollar value of the pound was con- franc at between 190 and 215 mill- dergo a certain rise in price, all templated and

The establishment of an Equett. Victory when the chamber by 365 | the Government of the Third rins 16 sets and 45 mins 27- sation Fund of 150.000 000 gulders to 248 votes rejected the Right Reich. In the course of his sec...for the first three distances steps would be taken to prevent a sterling while it stood decided

sellligrams per fine, ounce, correspond- for the purpose of smoothing out Wing motion referring the Gold deliberations the around, ing to a devaluation of about 30 rise of prices on homé goods.—

exchange "fluctuations not justiñed / Bill. back to the Finance Comm's State dealt with the currency 1904, and Paavo Narits time of.. per cent "

$5.

Tronajmron News Service.

Reuter,

SATISFACTORY REACTION

AMERICAN POLICY

Amsterdam. Bept. 28.

In view of the satisfactory reac-

to

The Federal Public Economy De- partment has issued a decree for- bidding. from September 20, the

rates in

Washington Sept. 27, ralaing of wholesale or rètail prices The possibility of the United on merchandise. the flon to the new monetary, mea-States revising the present strin-hotels. for gas and electricity and aures, the stock exchanges are re-gent restrictions on the export of also of ordinary rents and rents of opening to-morrow -- Houten,

gold, in order to permit the metal farms, without the authorisat in to how more freely between, of the Department tions participating in the newly- The press and public have taken achieved monetary agreement, is being discussed in Government, the decision calmly- financial quarters, it is felt that

Houler

EMERGENCY SESSION

The Hague, Sept. 28. Both Chambers have summoned an emergency session to deliberate

by normal trade currents is said to be envisaged.~ Reuter.

Right Wing Motion Rejected

ston. (EDR

Paris, Sept. 28.

The Olympic steeplechase, cham "Our currency remains stable" stated the Secretary of State of the world records when he covered pon. Lecholle, established new Reichs Finance Ministry Rein- seven miles in 34 mins. 46.8 seca, hard addressing a congress of eight miles in 40 mina. 0.2 necà.. Storm Detachment leaders of Ber- nine miles in 45 mins 13 secs," lin-Brandenburg, on Sunday. and afteen kilometres in 45 mins. This unequivocal statement was 45.4 secs. made in the course

of th

He thus beat Alfred Shrubbe“.

afteen

Becretary of which had been standing, since question, and emphasised that Ger 45 mine, 49.8 secs, The motion was moved by the many had not the least intention kilometres Nationalist leader on the ground of devaluating the Reichsmark. ⠀⠀

Reuter that there should be no hurrying "All our economic calculations of - GERMANY UNMOVED.

in such an important matter. The 1033 have been realised, above all Berlin, Sept. 77

Chamber then adjourned unt 4 just because we have never depart Berlin is not moved by the ex-

ed from the principle of maintain lead to a disturbance of the work change agreement talk and Herr Friedrich Reinhardt, Secretary of cided to support the Bill, but like and the standard of living of the "1 am convinces that tfal of

In the meanwhile the Radicals deing the stability of the currency of reconstruction we have in hand... the Ministry of Finance, declared the Communists they insist on German people. Nobody in any as do our duty secording to the thinking of going off the gold stanovil servants on the effects of a many to-day dreams of devaluer we can look into the future to-night that Germany was not compensating the workers and position of responsibility in Ger- principles laid down by our Fuch

devalued franc---

tion. In Germany nothing will be with confidence"'*-.. Router's Bulletin Service,

care that could in the last degree Transocean Your Service,

dard

Reuter

p.m.