Evening star., 1949-09-20
Sterling Area Markets Go Wild
As Gold, Commodity Stocks Soar
After 19 Nations DevoIuotion
Johannesburg Gets
Flood of Orders
To Buy Metal
BY the kssocioted Press

Devaluation of currencies across
half the world sent traders in
sterling areas scurrying for Gold
and commodity stocks today but
brought little change in American
markets.
With France and Canada added
overnight to the list of devaluing
countries, making the total 10.
others had still to fall in line.
Western Germany is to reduce the
value Of its mark. The Hong Kong
dollar fell into the devaluation
lineup. Holland officially set it's
devaluation rate for the home
land and 1ndonesia at about 80 per
cent, approximately the same as
Britain.
London's stock market went
wild. Some gold shares sold for
nearly triple last Fridays prices
Everywhere. gold was the toast
of the day. One reason: The
American Government buys gold
at $35 an ounce, paying United
States dollars. That means ex-
porting countries, in getting United
States dollars, can turn them into
more units of their devalued local
currencies than they could before.
So gold producers stand to get
more.
Exchanges in Rome, Milan and
South Africa shared the excite
ment. In Italian money markets
the lira fluctuated wildly and
cheapened. At johannesburg
brokers struggled to handle thou
sands of orders for gold pouring
in from many parts of the world.
Bonds Recover Some Losses.
Government bonds gained in
London. but they had suffered
severe losses in the last few weeks
in anticipation of devaluation.
Trading in foreign stocks was
barred in Paris. where the franc
opened about 6 per cent under
last weeks free market prices.
That was at the level sought by
the French government.
In Moscow, economic observers
believed the Soviet ruble will re-
tain its present relation to the
dollar. That will be Moscow's way
of saying that its ruble is as sound
as American coin. But Russia is
expected to adjust the rate of its
ruble in relation to the money
Of devaluing countries.
Canada, a great gold producer
like South Africa, made a COM
promise devaluation-10 per cent.
That means it will cost ITO cents
to buy an American dollar in
Canada.
The pounds worth was set at
$3.08 in Canadian funds. Thus
the effect was to benefit Britain,
since the pound would have been
worth only $3.50 if Canadian dol
lars had remained at par with
American dollars.
Over almost all the world, gold
was king-and the American dol
lar grew mightier.
May Call Parliament.
Prime Minister Attlee's cabinet
was reliably reported to be plan
ming an emergency session of Par
Lament. now in recess.
This has been demanded by op-
position leader Winston Church.
hill for a full dress airing of the
whole situation. Both the Lords
and Commons are expected to be
reconvened on Tuesday probably
for about three days.
Gold, oil, rubber and industrial
issues changed hands in huge
blocks on the London Exchange.
At The Hague, the Netherlands
government announced the rate
of the devalued guilder today as
$50 to the dollar. 1t previously
had been 2.65 to the dollar. The
devaluation amounts to 30.2 per
cent, shade under the British
cut.
Observers at The Hague expect
ed the devaluation would raise
Continued on Page AS, Col. %