The Waterbury Democrat., 1931-09-21

outflow of foreign balances through exchanges became effec- tive to-day.
 The house of commons, already in session, and the house of lords, convened in special session, were prepared to back the government and the bank of England in their attempts to stabilize the empire s economic, system.
 The usual calm of London Sunday was disrupted by the hur- ried return of Prime Minister Ramsay Macdonald to London aft CT a conference with the Prince Of Wales at chequers, an emergency meeting of the cabinet and the governors of the Bank of England. and a change in the bank rate on Sunday, the first time the gold rate has been abandoned since 1914, the start of the World war.
 British political and financial leaders were unanimous in the be- lief that the nation would pull through the financial crisis. It was emphasized that the abandon ment of the gold standard was de- signed merely to .ameliorate' the financial position while the gov ernment attempted to overcome its financial and trade difficulties.
 King George at Balmoral Castle in scotland kept in constant touch with London by telephone. The king had not indicated that he con templated an immediate return to the capital. He rushed back from Balmoral, after only few days of h hn1i1aXy whnn the Ia h0rs 'UnV- ernment fell and was succeeded by the present national administra- tion. ,l
 The Prince of Wales, fresh from vacation in southern France, re- ceived an explanation of the finan- cial situation when he took lunch con with the prime minister at Chequers, MacDonald's country place, Sunday. The prince had de- cided to visit the north soon but changed his plans to remain near London
 Macdonald went to, Chequers Friday for a quiet week end know ing that the governments efforts to avoid an adverse trade balance were progressing smoothly. He was informed of financial developments abroad, however, and returned to London Friday evening for consult tations with cabinet members and financial leaders.
 He went back to Chequers Satur- day night and decided to call a | cabinet meeting Sunday. After his luncheon with the Prince of Wales he hurried back to the city and met the cabinet. The communique an nouncing suspension of the gold standard was issued immediately The government made it clear that the decision would not "af- feet obligations of his majesty's government or the Bank of Eng land which are payable in foreign | currencies." The Bank of England last week | sold over $15,000,000 In sterling bar gold to Dutch purchasers who bought with proceeds of securities sold through the London stock ex- change. Another week of liquida- | tion on this scale could not be con 1 templated with impunity," the fin ancial editor of the Daily Tele- graph said. --.-......... ........
 The Daily Telegraph and the Daily Herald understood that sus- pension of the gold standard would lcontinue for six months.
 It was understood that the con- sent of the cabinet was unanimous for pension. Stock exchanges in the provinces were closed to-day fol- lowing the example of the London exchange.
 The Daily Herald predicted that there would be no steep decline in the value of sterling. The rapidity with which changes in the nation al financial structure occurred was Illustrated by the first Saturday opening of the stock exchange since 1927 last Saturday which was fol- lowed by the first Monday closing. except for holidays, in the ex- changes history.
 Chancellor of the Exchequer Philip Snowden was scheduled to explain the financial situation in a, radio address tonight at 9:l5 D. m. (4:15 D. m. EDT).
 Political developments growing out of the situation appeared ob- scure. 1t was conceded generally that suspension of the gold stan dGrd removed the possibility of an immediate general election. The