The Waterbury Democrat., 1931-09-21
THE WORLD GOLD
 SITUATION TO-DAY

Paris, Sept 21-(UP)-France was prepared today to lend finan- cial aid to England if it was re- quested. The government had not been officially approached by Eng land at noon.
 I Government financiers, particu- larly officials of the Bank of France had been in continuous conferences | since Saturday evening studying 1 the British situation. Minister of Finance Pierre Elan | din returned to Geneva today to report to the league of nations fi- nance committee after a hurried the governor of the Bank of France. Premier Pierre Laval and minister of budget Francois Pietrl spent the morning in conference at the ministry of finance.
 British banks in Paris, including Lloyds National and Provincial 1 bank and Cook & Sons, decided i temporarily to discontinue cashinS checks drawn on London banks. Cook & Sons offered 105 francs | to the pound sterling compared with Saturdays close at 123.97. London, Sept 21-UP)-Ex- haustion of Great Britain's gold supply caused the government to suspend the gold standard for the time being.
 From the lay viewpoint, this means that Britain is no longer prepared to pay her debts in gold and that Britisher cannot ex- change bank notes at the Bank of England for their gold equiva- lent.
 | Britain's position is similar to that of an individual rich in stocks and bonds who can not collect from his creditors and Is short of ac- tual cash.
 The gold standard was initiated in Britain early in the 18th cen i tury It has been abandoned twice, first in 1799, during the Napoleon is wars; reestablished in 1921: again abandoned at the outbreak of the World war in 1914; rees- tablished in 1925.
 Paris, Sept 21-(UP)-The Paris | bourse, only market in Europe to open today, dropped sharply when l trading began. Traders unloaded stocks at wide price concessions. The Bank of France issue drop ped 1790 points; Suez Canal HOO points to 11,400; Bank Trass-Atlan- tic fell 665 points.
 | Trading in foreign exchanges was suspended and as result many British mining stocks were not quoted.
 , The government ordered the | hourse 10 discontinue quotations of the pound sterling. Unofficially, the pound dropped 1924 points, from 12S.94, Saturdays quotation, to 1Oi. New York, Sept 21-CUP)-The British pound sterling was quoted at $420 at the start O over the counter trading here following a | drop in the currency to S4.40 at London. Saturdays close was $4S4 7-S
 Today's rate was nominal, little trading being done in the currency because of the uncertainties in the situation As was the case last week short selling again was discour- | aged.
 Liverpool. Sept 21-(UP)-Cot- ton and wheat prices scared TO- day with the fall in value or the pound sterling. Cotton rose "A 4bale, while wheat rose from 10 cents a bushel.
 London, Sept 21-UP)-The price of gold here was fixed at nominal quotation of S4 shillings 3-4 pence an ounce today. This compared with Saturdays quota ton of S4 shillings II 1-2 pence.
 Stockholm, Sept 21-(UP)-Tne Bank of Sweden today raised its discount rate from 4 to per cent following the advance in the Bank of England rate from l-2 to | per cent.
 Copenhagen. Sept 2l-tUP). Bourses in Stockholm. oslo, anu Copenhagen were closed today awaiting developments in London
 Vienna, Austria. Sept 21.-UP) The cabinet ordered Austrian ex- changes closed indefinitely to-day
 Chicago, Sept 2f.-(UP)-The Chicago Stock Exchange opened for business to-day after the board of governors discussed the situa- ton caused by Britair's suspen- sion of the gold standard. The board voted against closing the exchange. Paul II. Davis, president of the exchange. issued a