Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-21

re1ulted in the British pound sterling
being equivalent normally to s4.86ss.
In the British foreign exchange
and those throughout the country to
hold the market stable during the tram
sition. 1t was emphasized that banks
would be open as usual and that BUSH
mess would continue on normal basis.
Premier Issues Statement.
Prime Minister Macdonald issued a
statement calling attention to the fact
that more than 81 900 ,000, 900 had been
withdrawn from the London market
since the middle of July and that about
$50 100000 had been Withdrawn in Sat-
urday's halliday of tracing. He en-
phasizsd that his action was only tenn
porary and that the nations enormous
resources would save the day il the pub
lie co-operated.
His MajeSty's government have ar
rived at their decision with the greatest
reluctance" he said. but during the last
10 days the international finan Sial mar
kets have become demoralized and have
bsen liquidating their sterling assets re-
CARELESS of their intrinsic worth. In
the circumstances there was no alter
native but to protect the financial posi-
ton Of this country by the only means
at our disposal"
The suspended section of the gold
standard act ccmpels the Bank of Eng
land to sell gold in bars for E3 lis
1012d per troy ounce.
The section read as follows:
THE Bank of England shall be bound
to sell to any person who makes de-
mandS in that behalf at the head Office
Of the bank during Office hours of the
bank, and pay the purchase price in
any legal tender, gold bullion at the
price of 3 pounds II shillings 1917
pence per ounce troy of gold of the
standard of flneness prescribed for gold
coin BY the coinage act of 1870, but
only in the form of bars containing
approximately 400 ounces of fine gold"
VIII Broadcast Explanation,
Chancellor Philip Snowden will broad
cast tonight an explanation of the gold
situation. King George has been in
constant touch with Mr. Macdonald.
and he is understood to have been as
sured that his return to London will not
be necessary. The Prince of Wales has
temporarily Cancelled his plans to go to
Balmoral to see his father
The summoning of an international
conference to arrange for better distri-
button Of gold and to place irterna-
tional trade ON a better footing was
predicted by the press in commenting
on the governments action.
Inc papers expressed the belief Brit
1sh trade gradually would revive under
the suspension, that main industries
would be stimulated and that unen-
ployment figures would drop and that
stock values would improve
The public was abjured in the news
papers to keep cool and to avoid ex-
tremist views of the situation and was
assured that vast stores of food and
raw material in the country should in
spire confidence. This view was stress
ed by Arthur Henderson, leader of the
labor opposition in Parliament, who
wrote in the Herald:
The situation calls for confidence.
not despair--for steadiness not panic.
The fundamental strength of the Nation
is unimpaired and il we remain calm
and resolute We shall more speedily
suImount the dif1culties"
Frequent emphasis was laid by the
papers on the effect of what was de-
scribed as boarding of gold in the
United States and France, but it was
attributed mostly 10 circumstances
rather than to deliberate intention. The
express said in this connection: "Ameri-
ca couldn't help it because the balance
was so heavily in her favor as a con-
sequence Of the immense sums owing
her as result of the war, but France
went gold mad"
Aim to Stop Gold Exports.
That part of the gold standard act
which is being suspended compels the
Bank OF England to sell gold in bars at
a fixed price. The object of its sus-
pension is to stop the export Of gold
from Great Britain.
Subsection 3 of the pact, which will
continue in force for six months, au-
thorizes taking such measures in rela-
ton to exchanges and otherwise as may
be considered expedient for meeting
difficulties arising in connection with
the suspension of the gold standard.
1t is understood that there will be
no attempt by the government TO go
to extremes in using the power 1t pos
Sesses. A government spokesman to-
night emphasized that the present
measures must be considered as only
temporary
The cabinet meeting at which the
momentous decision was taken lasted
from pm. to 6 pm. yesterday. There
Is said to have been complete unanimity
among the ministers who. before agree
ing to such course. felt that every step
had been taken to avoid II.
Courage Declared Needed.
The national government had been
acting on the assumption that II still
had time to push ahead its legislation
the economy bill and the budget-and
that 1t had time for negotiations with
friendly governments, particularly the
United States and France. 1t has been
acting On the assumption that the case
Of the pound sterling was by no means
lost.
What the British people want"
Government spokesman said today, lis
cold courage and warm feet"
The government is determined TO
stand no nonsense and drastic stepS
will be taken to stop any monkey bust
ness. The government believes that II
every one keeps calm and pulls to-
gethAr the period of anxiety will be
shortened. There Is no need for any,
| thing in the nature of a panic. II
would be Of real value TO the financial
position of the country If everybody
would act on the slogan, Business as
Usual
The internal position Of the country
is sound, but the public must help TO
keep it sound by avoiding panicky tend
encies 1t Is reassuring for the public
to realize that there is a more than
ordinary supply of food in the country
at the present time. The government
intends to watch prices closely"
GERMAN BoURSEs CLOSED.