Evening star., 1936-05-03
GOLD FLOW NEAR
S4O,0()0,0OO MARK
ON EVE OF ELECTION
.$13,065,O 900 More Is En-.
gagged for Shipment From
France to New York.
PARIS EMBARGO WITHIN
MONTH is POSSIBILITY
Discount on Future Francs Shows
Fears at Home and Abroad
on Today's Results.
By the Associated Press.

BY the Associated Press.
NEW YORK. May 2.-The week
long outflow of gold from Paris today
reached its largest daily proportions as
banking quarters awaited the results
of the Sunday run-off elections in
France.
Local banking institutions were re-
ported in informed quarters to have
engaged sl3,065 900 of gold in Paris
during the day for shipment to New
York on the earliest steamers available.
At the same time, the French franc
was able to improve shade In the
foreign exchange market. lifting .00ls
of a cent to 6.58l2 cents at the close.
Earlier, in Paris, the dollar had gained
on the French unit at the equivalent
of 6.58 cents to the franc.
The latest arrangements for ship
ments of yellow metal to the United
States from France brought the total
Of the current movement to approx
mately s4O.0O0,o0o.
Uneasiness Intensified.
International banking quarters have
had their attention riveted on the
French political situation for several
weeks. and the swing to the Leftist
parties shown in last weeks prelim-
mary voting intensified uneasiness
over the maintenance Of the gold value
of the franc.
Although official French sources
have consistently denied any intention
Of devaluing the currency. banking
circles here have persisted in belief
that sharp swing to the radical side
in the elections increased the chances
OF such action.
Whatever the outome of the polling,
it was said by Wall Street experts.
any change in the value of the franc
would probably await at least the res
ignation Of Premier Albert Sarraut
and the formation of a new govern
ment, which is scheduled for June !.
Gold Embargo Talked.
NEW YORK, May 2 (SpeciaD.-
Gables and wireless dispatches to
Business Week gives the following sur
vey of business abroad for the week
ending today:
PARIS-'In last Sundays ballot
ing on candidates for the Chamber
of Deputies, only about 20 per cent
of the seats were filled by representa-
tives who received a clear majority on
the first ballot. Though Communists
made the most striking gains in the
first ballot, they are not expected
to show up quite 50 we'll in the next
vote.
The drain Of gold out OF the
country has been stemmed. but not
before another I 600, ,000, 600 francs had
been exported. The discount on futre
francs indicates the lack of confidence
which Frenchmen and foreigners have
in the currency. A gold embargo with
in a month is distinct possibility"
Budget Faced Calmly.
LONDON.-"Financi and indus
trial Britain continue to view the
new budget with its tax increases
calmly. Biggest stir has been caused
by the revelation that news of the
details Of the budget leaked out ahead
of time. Cabinet sources are blamed,
rather than the civil service
There is renewed agitation over
the failure Of the iron and steel in
dustries to complete contract deliveries
on short notice. Capacity is being
but there is shortage of
skilled workers in every line. due to the
of the trade unions to
allow the ratio of apprentices to
trained workers to increase faster than
the old law provides"