The Washington times., 1937-02-23
SUPP0RTSPLA
OF ROOSEVELT
F0RCURB
Gambling in Metals
Creates Fear For
Arms Program

LONDON, Feb. % UN.sJ.
The British government has
moved to curtail British invest
ments in the United States in
line with President Roosevelt's
desires, it was learned today.
British investment houses and
insurance companies have been
requested informally by the Brit
ish treasury to restrict further
investments in America.
Informed London inancial
circles are inclined to believe this
action was taken either on a hint
from the United States Treasury
or as a result of the recent visit
of Walter Runciman, president Of
Britain's Board of Trade, to Wash
ington, where he conferred with
President Roosevelt.
Treasury Drops Hint
The British treasury's request
took the form of q polite hint to
leading investment and insurance
houses that the present was not a
good time for further investments
in America. To this was added the
comment that neither the United
States nor British treasures would
welcome additional large-scale in
VestmentS from Britain.
The view prevailed that London
companies generally would be
willing to fall in line with the re-
quest in the hope President Roose-
welt would forego his reported in
tention Of clamping heavy taxes
on foreign holders Of American
securities.
The British government also
was regarded as willing to assist
President Roosevelt in order to
keep money in Britain in view OF
the rearmament loan here.
Arms Program Menaced
Meanwhile, the British govern
ment, alarmed by gambling in
base metals, which rose fast yes
terday with the aid Of European
buying, was fearful lest continued
rises put the estimated cost of its
$500, 100000 rearmament pro
gram seriously out of gear.
Realization that this is likely to
happen may compel the govern
ment to curb speculation, accord
ing to informed "city'' opinion.
Base metal shares were generally
easier today in sympathy with the
general unsettled condition of the
entire market arising from ner-
vouSness over tax increases and
the British budget.
Responsible members OF the
metal exchange complained that
under such spectacular trading as
occurred yesterday it was impos-
sible to carry out genuine orders
sin the present unhealthy state Of
the market"
Serious Losses Stressed
They also expressed the opinion
spectators eventually would "get
badly burned in the present state
of affairs. They pointed to many
instances of serious losses in yes
terday's copper and tin SeeSawing.
The rise in metal prices, result
ing from heavy buying, was at
tributed to tips, rumors and re-
ports which have been spreading
increasingly through London finan-
cial and speculative circles ever
since announcement of the British
rearmament program. In some
quarters there was a disposition to
believe the higher prices would
be maintained unless some action
were taken.
The price increases brought
warnings in British newspapers
that the government ought
metals all last year and was pre-
pared to meet situation such as
now exists. These warnings, in
the view Of some business circles,
may have been inspired officially
by the government to discourage
speculation.
The laborite Daily Herald pre-
dicted a hot time for SPECTATORS
who might hope to "extort famine
prices later from the British and
other governments"