The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-10-25
BELCIANS QUIT
MONEY FARLEY
WITHOUT LOANS
Nation Seen Confronted by
Difficulty in Staying on
Gold Base.
Outlines Special

NEW YORK, Oct. 25.-The Brus-
sells monetary conference last week
at which representatives of gold bloc
nations conferred on the interna-
tional money situation ended as
serious disappointment to the Bel
gians, weu-informed banking circles
here reported today.
The conference, it is asserted, was
called chiefly because of the tenu-
Gus strands which hold the belga to
gold. Should BELGIUM be forced off
gold, the position Of the French
franc would be in serious danger
and that bears threat direct to all
other gold currencieS, it is pointed
out.
Got Less Than Desired
Despite the fact that as a result
of the conference steps to increase
international trade were taken and
a general commission is to be con-
voked at Brussels inside of three
months, such measures, it is be-
lieved, may prove insufficient. Bel
GUM, it is reported, wanted subStan-
tial loans from France. Informed
quarters assert that these she did
not get.
So when the Belgium parliament
meets on Nov. II, it is thought
the representatives to the Brussels
conference will report with very
much less than had been hoped for.
This gives rise to the opinion in
some of the beSt-posted quarters
that there is possibility the pres
ent Belgium cabinet will turn in
its resignation. That might mean
that the country would Shelve the
gold standard.
Possibility of Changes
Those who observe with caution
however, point to the contingency
always present that the situation
may change overnight. French au-
thorities may decide to give Belgium
the loans she so greatly desires, or
the eXpedients agreed upon may
seem sufficient to keep Belgium on
the gold standard.
But the possibility that such
things may happen have been very
much under discussion in the pri-
vate conferences in financial board
rooms here and abroad, and the re-
suit last week was wave Of selling
of gold bloc currencies and purchas-
ing of sterling, which put sterling
up almost 2 per cent in week in
terms of American currency.
Influences in this country, more
over, tended to accentuate the move
ment. Despite assurances Of Presi-
dent Roosevelt that there would be
no soldier bonus and that he was
opposed to the idea of a central
bank, European eyes could see
nothing except the enormous spend
ing contemplated here for building
and public works-spending that is
likely to leave a deficit of some
$4,000, 100000.
Sterling Rises to S4.9S.
This has caused widespread Euro
pean buying of sterling against the
dollar, which tended during the last
days of the week to depress United
States money still further against
the pound, until sterling rose to
$4.98 on Saturdays exchange mar
ket, gain of 81 cents from the low
Of the previous week.
Two other influences tended to
give strength to the pound. The
fact that the slump of the franc
made it possible to purchase more
gold in Paris by first purchasing
sterling in London, tended to give
the English currency strength in
terms of the dollar also; and the
fact that the spectators who had
been selling the pound because of
seasonal influences we're running to
cover, also made it f1rmer.