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About Eugene register-guard. (Eugene, Or.) 1930-1983 | View Entire Issue (Sept. 21, 1931)
Weather: Fair Home Edition LANE COUNTY'S HOME NEWSPAPER. TODAY'S NEWS TODAY EUGENE, OREGON, MONDAY, SEPTEMBER 21, 1931. PRICE: on streets 3c, ox trains and news stands bc, Sunday editiohso NO. 83 FOUND! Government Of England Suspends Gold Standard As Nation Faces Crisis ALARMED! SENFaNTS ia.rilCTU Mm Intervention in manchuria ULTliT 00 SUSPENSION BONUS DEMAND league Ol JNauuua na&cu Immediately Wa is aroused Lling Against Japan Is At High Pitch in Nanking VAVKIXG. Sept. 21. 0P China Kfd out today against the Japanese Lpation of southern Manchuria. finrernment oiliciais, newspapers L individuals expressed their re- itment in various ways. pHriiuumro Nanking. Feeling against Jnpan L running high." Mass .meetings r lareely attended, students par- ltd the streets with banners deery- L the occupation and the govern- nt designated next Wednesday ns lomiliation day" in connection with incident. Japan In Area iHhmiffh nfficinl reDorts said Jan- Sese troops had evacuated Kane nctse, near Changchun, the termi- s of the pout n jinncuurinn railway, bier important cities of Mnnehurin fcnained in tlie military grip of the imirted Alfred Sze. its chief dele- itp to the leasne of nations, to Iny ina s case before the league council. iThe Chinese delegare was requested i tnnpal for the Icaeuc to take im- fdiate and appropriate action accord it to the league covenant and to u5f Japanese troops to withdraw m preserve peace in tne rar iast. Intervention Urned Representatives of Chinese news !encien and newspapers, in the name the nation's press, cabled the lcn p of nations urging intervention in mchuria, where "wnnton invasion this pence loving, law abiding peo- showed utter disregnrd of the 'ashington treaty and the Kellogg Kt." C. T. Wang, foreign minister nd- fssinir the Government s weekly morial meeting, said: .. "We may lose our lives, we may ip our homps. but we cannot, sur- mder any part of the country in Kited through centuries from our irpfathers." .Tat fhi.Tan . coIr,- MAmKn. f i Kuomintang. the largest political Srty in Llnna and the organization hind the nationalist government i "Among the civilized nations It Is p way of one neighbor to help nn tter in timo of distress. When .Ta Vn wns afflicted by the earthquake 1923 all the nations, including ft: a a, cam to hr aid. i Japan Unneighborly "J"Xow China is gripped by terrible pods and confronted with a serious ftimnnist menace, but what is Jn n doin? to help her sorely afflicted ishbor';" tA high official nf the foreign office, wuriing the situation, said that if wan fniled to make nroner nmends SEE CHINA STORY PAGE 10 eathe r News: ptooday dawned mostly fair in Eu f. with prospects for warmer ploer and rlmr skies for the first Wl fit th. n-nnl. ... I . ntt::i , ...-.-i. jit t-;iM. iflillllll pi'r data announced Monday KIRe'cHM . UlAcuikiffrnu. t ,. - ti naniii u I u IV . IHir ;tbt d Tuesday ; warmer in.in- L ; 'u, :1'1; pentie to moderate .... um nu snore, t ire wea f f,nJ't f"r Oregon: Fair Tues- "r"eMi!iy Willi risniff tem- Fcl , STATISTICS (From the 'i. .u. ncuroekert. local cov iment fiM............ . -f:- S In","' degrees; DMxi. , Vj k 'lesrees. dlamette i-i btlon- normal. Wind, north- felUSLAW TIDES: Tuesday, hlph I" ',' lM P. m.j low. 4:31 a. P. U:.n n, m.: )nw r,:2n m-i 5.42 wtlement Of Eugene hjick isttlea,, ''t of Kugenes milk recast Monday after- eraent between pro Si tors will be reach r three days, accord dr,y from some con- ' as fr, 1 MipWe :r. " and d:.;r "i'kin lltr, 1 "rd Mo lA'l. di.tribmo s of Eugene were ng Monday afternoon "f ruiiimerce to per '.TTinji among them ree distributors were e-tmir. tne purpose -nii, f,. tr, mnimnin '"f th milk dis- itere nnl to work ' I,,liliC confidence i M';v slid its purity. t,t sti'l oilier inter he b ivinrss were d;s- cro'ip generallv h s "nd little ones. "T'i of directors "'"krg to further Jin.iatwn of their full time - e tl.ft h'itnes nf tic.,, -,;.(,; a p-..ducrs. In the ',r'en prodicers . "i ort.m Tivpmvt M for ti: ,. n: "tad.tr:. '"1 rl ,. c-:.- ' i: ' , ' , "t th. r,. r 4-r i 'iwk Forced down by bad weather conditions during an attempted crossing of the Atlantic from Por tugal, Christian Johanssen, above, and his two co-pilots of the mono plane Esa, were found Monday by 'a steamer which located the wreckage of their plane In the sea. CHEST TO BE MADE Plans for Getting Funds For Beneficiaries to Be Talked The constitution of th'e Eugene Charity Chest is expected to be adopted at a meeting of the general committee and representatives of the beneficiaries nt the chamber of com merce at 7:o0 o'clock Monday night. 1'lans for the canvass for funds are also expected to be made at this time, according to F.dward F. Bailey, chairman of the committee in charge. The beneficiaries of the Charity Chest are the I.ane county chapter of the American Ked Cross, the Salva tion Army and the St. Vincent del'aul society and each will receive a pro portionate share of the funds, to be determined by the directors of the chest. The constitution provides for a general council to administer the funds of the chest, to be made up of 15 citizens of Eugene, each bene ficiary to appoint five. This council has the privilege of appointing five more to make a total of i!0 in the group. A board of directors will con sist of six persons elected from and by the general council and a budget committee lo pass upon the budget of each beneficiary organization is pro vided for. This group will elect a president, vice-president and treasurer to serve without pav and a secretary who shall devote such time to the duties of the office and receive such com pensation as shall be determined by the directors. A reserve fund Is an Important feature provided for in the con stitution of the Charily Chest. Ap propriations from this fund will be made only to meet extraordinary con ditions and emergencies. Another provision is that no liene ficinrv organization shall give enter tainments for the purpose of raising funds, or solicit contributions other than permanent endowments or lega cies in behalf of suh organization, without first obtaining the approva, of the board of directors of the chest. Milk Trouble Expected to tho Eugene pasteurizing plants, necessitating a manager who could handle all such business for the pro ducers group. Practically all the contracts held by the Eulene Farmers' creamery with producers have been heard from and they were expected to be all released by the creamery board at a meeting somn time Monday. In the new plan between distributors and producers, distributors buy tiieir market milk only from the producers' association. Another meeting of distributors to further put over their organization is expected to be held shout Wednesday. Man KiIledWrrT Hall's Plane Fall NEW TY'IiK. Sept. St. '4-) Teter .1. Brady, president of the Fed eration hank, was killed todsy when .lames lin.-dwin Hall's speed plane, the Crusader, crashed in flames l tween two houses en Staten island. The houses were set afire, and a woman in one of th'm. Mrs. Mry Parito. was humeri to death. ll;iil escaped by Jumping i'n parachute. Brady also or r"'"- chuie. but fsiied to tiinca j ifl time to leap. County to Press Charges If Pupils Are Not in School Wednesday RESIDENTS ADAMANT Refuse to Send Children To Regular School Building The district 17 school row contin ued unabated Monday with parents opposed to the present members of the school board defying the ultima tum of Assistant Superintendent Lawrence C. Moffitt to have their children in the district school Monday morninc or face prosecution for vio lating the compulsory school law. The defiance was expressed by the parents again sending their children to the home of Mrs. Maud Frady, former teacher of the district school who was discharged by the majority members of the school board, Mrs. Ruth Wright and Mrs. Myrta Mc Fadden. Warning Sent Out Mr. Moffitt stated Monday that the warning notices required- by law would be Bent out Monday night to all parents -who have been keeping their children away from the district school. Miss Lela Parks, teacher hired by the school board to replace Mrs. Frady, was expected to report the names of the offending parents late Monday afternoon. The written notices, warning the parents to hare their children attend ing the district school on the day following the receipt of the notice, are expected to reach all of the par ents involved on Tuesday, Failure to hare the children in school on Wed nesday morning is expected to result in complaints being filed against the parents by Mr. Moffitt as school at tendance supervisor. May Faet Trial Parents arrested on the charge of violating the comnulsorv school lnw will be brought to the Junction City justice court for trial. The court mny Impose either fines or jail sentences tor tne offense. The parents, who seek the resig nation of Mrs. Wriehr ind Mrs. Mc Fadden from the school board and the reinstatement of Mrs. Frady as teacher, declared today that they would not back down but will con tinue to hold their children from the district school as long as the two wo men directors are in power. - Sources close to the situation hinted Monday that the dispute might he settled out of court through a com promise which would involve the resignations of the two women di rectors and the status of the deposed teacher in the district. The outlook for a peaceful settle ment is not held to be very bright. uot!) sides in the row have made re pea ted statements that they would tight the matter through to a finish and neither one wishes to be the first to annear to neld a noint toward-end ing the breach between neighbors which threatens to make its effect felt all through the school year re gardless of what form the settlement may take. E RENO. Sept. 21 OJ.R) Jack Demp spy was granted a divorce today from Kstelle Taylor Dempsey on the ground of mental cruelty. The decree was entered by default when his nctress-wife failed to bring a crors-complaint or contest the case. Although Dempsey's was the lflth on the docket of Judge Thomas F. Mornn, the preceding complaints were heard in short order and the former champion's decree was entered at 11:57 o'clock. The bearing was held behind closed doors. Jim McKay. Reno sportsman, was Dempsey's wit ness. Ieonord Racks, bis manager, also accompanied him. Entering the court shortly after 11:30. 2. minutes was given, to the czc in t end of the usual five, in an effort to give the former champion an "iron clad" decree which would resist any contest. Although V"pt secret st Dempsey's request, it was understood the pro codings weh unusually thorough, and that testimony wss given in detail. It was reported that Dempsey nnd McKay charged Mis Taylor with be ing tempers mental to the point of erueltv. entrsvsgant. snd as larking lore for a home, and not desiring children. Tillamook Man Is Mistaken for Deer and Killed TTTXA Mh K, Ore., Sept. 21. p)Miftrsken ftr deer, Rslph Nelson. 4. Tillamook. hot to death hv his brother. Wil liam Nelson, tlanbsldi. Ore., on Miami creek IS mile from here Tenrerdsv. It wss the first casu alty of Oregon's deer hunting sea son hKh opened Sunday. Nelson's twxlv wan carried part of the sit out of the rough muntrv where the andent hap pened bv William NeJon snd three other members of the Jmnt ing psrtv. Kirt word of the trairedT came when the? sent ahead for fcflp in carryiLg their burden He'll no longer be the "late" mayor of New York. For Jimmy Walker, world famed for hit tardc neaa, waa preaented with thla huge alarm clock auipended by a gold colored chain when he attended a luncheon of American and English newipaper writer. In Paris. TWELVE KILLED IN Ohio and Indiana Rocked By Hard Quakes Late Sunday TOKIO, Sept. 21. OP) Japan's most severe earthquake since 1024 shook Tokio and adjacent regions to day. Incomplete reports showed 12 deaths. 40 seriously injured and con siderable property damn ye. The quake occurred at 11:20 a: m. (0:20 p. m Sunday B. S. T.) Tele phone and telegraph lines in Gumma and-Saitsma prefectures, where the shocks were the worst were torn down. First reports agreed that many houses collapsed, causing the fatali ties. Yokohama, Kofu, Fluzuokn, Fuk ishimn, Nngoya nnd various other cit ies on Hondo island felt the shocks. Thousands of persona ran from their homes in Tokio and Yokohama, where the great earthquake of 11123 did enormous damage and instilled in the populace an acute fear of earth shocks. Department stores and other busi ness places, which wero thronged with morning shoppers witnessed scenes bordering upon panic. QUAKE IN U. S. C LE V E IA X D, Kept. 21 . W) More than a dozen cities nnd towns in portions of Ohio and Indiana were severely shnken last night by sub terranean tremors, the most pro nounced in this section since 1811 when the entire Ohio river valley was affected. Although attended by intense ex citement, among householders, the qunke did comparatively little damage and caused no loss of life. It renched its greatest Intensity at the village of Anna, in western Ohio. The community of iVK) persons was without a whole chimney today, and every house nnd building was damaged to some extent. Plastering in the Anna high school was shnken from the wnlls and the corner stones of the Lutheran church were jarred Iooe. Damage was esti mated nt $10,000. Starting at about 6 o'clock, east ern standnrd time, nnd continuing over periods of time as great ns 30 sec onds, the qunke extended from Zanes ville, O, on the extreme east, to Richmond. Indianapolis, Connersville and Lihcrty, Ind., on the west. Ilittldings were reported to nnve swayed in SrHngfield. O., while dis tinct sho-ks were felt in Columbus, Lima. Cincinnati, Dayton, Cairo, Westminster. Sidney, Wnpnkoneta nnd ftomer, O. Sidney reported fallen chimneys but in other localities the effect consisted largely of rattling dishes nnd windows. Lindys Give Aid In China Flood Relief NANKING, China, Pept. 21. A) Colonel and Mrs. Charles A. Lindbergh, volunteering their services to the Chinese government for relief work, msde an aerial surrey of the flood-stricken section of northern KinngMj province today. The survey flight was the result of an offer by Colonel and Mrs. Lind bergh to place themselves and their plane at the disposal of the govern ment to help in any possible manner during the flood emergency. The offer was accepted with thanks by Chiang Kai-Shek, head of the na tionalist government, and T. V. Hoong, finance minister. 'The region for which the fliers headed was Inundated late in August and the loss of life was estimated at KHtxKl in five counties along the grand canal. Destruction in that area waa so thorough, however, that no means of making a reliable surrey have been available. At Lindbergh's suggestion, all so cial function planned here in honor of Mrs. Lindherrh and himelf were csnceled to enable the fliers to de rote their full time to flood relief work. Af'eP accepting Lindbergh's offer to help Soong sent two experts of the. floon! relief commission from Shsnrhsi to Nanking to confer with the fliers on the most ffectire way of unci their plane, Declares Government Can Stand No Further Expenditure SITUATION 13 GRAVE Tax on Rich or Loans No Help at Present, Says President By RAYMOND CLAPPER (United Press Staff Correspondent OLYMPIA n.VLL. DETROIT, Mich., Sept. 21. (uR The American government can carry no additional burden of expenditure without "grave risks." President Hoover solemnly warned the American legion conven tion today. The country's need, he said. "Is second only to war." He asked the war veterans to de fer all demands on the government until after the depression. It was in effect a request for a moratorium on all bonus and pension proposals during the depression. Difficulties Shown . Neither loans nor taxing of the rich, he declared, would avert serious difficulties if additional demands were made on the government. Mr. Hoover, speaking earnestly and frankly, appealed to the' World war veterans to summon again the same courage and self -sncrif ice which brought victory in the World wnr and to enlist in the fight to maintain the stability of the United States. Without mentioning specifically bonus nnd pension proposnla advo cated by many in the legion. Mr. Hoo ver, after referring to depression re lief nid given by the legion, said: "But there Is today an even greater service to our country. That Is the determined opposition br you to addi tionnl demands upon the nation until we have won this war ngninst world depression. Nothing would give greater alow of confidence to our country today than your enlistment nnd the vigorous support you can bring to this effort to prevent addi tional burden on the government from any quarter whatsoever. Situation Grave Mr. Hoover emphasised the gravity of the situation further. ''The imperative moment has come when increases in government expen ditures must be avoided, whether it he ill considered, hasty, or unin formed legislation of any kind, or whether it be for new service meri torious in themselves," he said. "We can carry our present expendi tures without jeopardizing national stability. We can carry no more without grave risks." Mr. Hoover urged that "no one be misled by those who sny it Is only necessary to tax the rich.' "We must face the absolute fact that the rich can be taxed to the point of diminishing returns and still the deficit in our ordinary and neces sary expenditures would not be cov ered even upon a basis of utmost economy," he said. In the end. he warned, "it is those who would be forced to work in the fields, at the bench nnd desk who would be forced to carry an ndded burden for every added cent to our expenditures." nALIFAX, N. 8., Sept. 2L OP) All three flyers, recently lost on a flight from Portugal to New York, were found today, The Norwegian motorship Belmoira, i bound for Russia from Albany, N. Y., j reported this morning finding the wreckage of the plnne In which Wiley Rody, Fernando Da Costn Viega and Christian Johanssen. left Lisbon for New York. The motorxhip sighted the wreckage off the Newfoundland coast near where it was last seen In the air by a stenmer. Later anotlVr messsge came from the Belmoira reporting that two of the fliers had been taken from the wreckage. Still a third messsge brought word that all three were saved. Will Body, Christian Johanssen. Herman airmen, and Fernando Costa Viega, Portuguese sportsman, hopped off from Juncsl Do Sol, about 30 miles from Lisbon, Portugal, at 4:30 a. m. (K. S. T ) September 13, bound for New York. Their junkers all metal plana was heavily laden with 035 gallons of gasoline and 105 gal lons of oil. They last were sighted on Septem ber 14 at 1:40 p. m. (E. 8. T.) by the stenmship Pennland about KO miles southwest from Cape Race, Newfoundland, and 305 miles east of Halifax. 4 Employment Survey Of State Under Way PAL-EM Sept. 21. A com plete survey of the unemployed situa tion In Oregon is being conduced by -L M. Devers. attorney for the state highway commission, upon the sug gestion of Oorernor Julius L. Meier, it was announeed here today. Immediate action in handling the affairs In earh cotmt? has been urged hv Derers In communication with the county commitfees, in which he hat pointed out steps tor securing tuei and foodstuffs for msny of the needv. The Rtate htrhwar commission will use the surrey figures as a basis for employment on emerfency highway eon tracts, a was maicitto. J.P.Morgan Declares English Action . Correct Financiers All Deem Move as Step to Recovery By DEWITT MacKENZlH Chief of London Bureau, Assd Press (Copyright 1031 by Associated Press) LONDON, Septi 21. OP) J. P. Morgan today expressed to the Asso ciated Press optimism regarding the situation arising from Brent Britain's sensational suspension of the gold standard. He said it waa a "hopeful and not a discouraging event." Mr. Morgan made this statement In reply to a question from a corres pondent who sought him in bis pri vate office not far from the Bank of England. "This step seems to me to be the second necessary sti'ge in tho work of the national goverumeut, the first being the balancing of the budget," Mr, Morgan said. To Restora Trade "The completion of tho govern ment's work will bo the restoration of trade iu this country." "This being the case," Mr. Mor gan continued, "it seems to me a hopeful and not a discouraging event and one which brings the great work of the government much neurer to accomplishment." In receiving the Associated Press correspondent, Mr. Morgau broke an almost ironclad rule never to grant newspaper interviews. His father ob served the same rule before him. But once the distinguished banker decided: to tnlk, no one could have been more cordial. He discussed the situation for almost on hour nnd while it is not permitted to quote him any further than nbove, it mny be said that In the entire discussion he did not express any pessimism. And he added a word of fine tribute for thn character oud stability of the Enelish neonle. Several other financtera expressed similar opinions. Without exception, they held tho view that the govern ments Intent step is in the right di rection nnd that Britnin will weather her crisis. Situation Serious There waa no disposition to try to evade the fact that the situation is very serious. Indeed, one of the most hopeful signs these financial experts find is that England does recognise tho sit uation ns serious nnd It attacking her problem from that standpoint. Other financial commentators re quested that their names be withheld but here are some of the points made by several American bankers, all of whom nro widely known: Suspension of the gold standnrd by Great Britain not only was not un expected, but it was a logical and loregone conclusion. From tho standpoint of the finan cial expert It wan the correct move. The only criticism oirered is mat it should have been done before. Far from heing disconcerting this move has cleared the atmosphere. Stops Run What, has happened is that Eng InnH. ah n hnnker. has stopped n run on her Institutions. People nil 1 he world over were cashing their Mrltish securities here in London. Individuals did not, realise the magnitude of the operations and did not recognise that they really were pnrucipnung in a run. Brltnln was not going to let herself get caught ns (Jcrmnnv did just after the war when tho mark crumbled to practicallr nothing becauie Germany's reserves had been wiped out. financial experts declare. The fall In the dollar value of the pound ha been antici pated and discounted by bankers, It is said. Baseball Scores AMERICAN LEAGUE At Ronton, Jut tame K. TT. E. Pt. Loui, 0 8 0 Boston 2 ft 2 f'nffmnn n4 Bfniough; Durham and Connolly, At Boton, 2nd tm Kt. Imis s 2 4 1 Bontnn. . n 12 2 (irnj and Ferrrll; Morris and Stonf. At Philadelphia, lit gam TVtrolt 2 11 ft Phlldlphla 3 ft 1 Una. .it and Grabowakl; Bommfll and llovinj. At Philadelphia 2nd game Pefroit 13 1 Philadelphia ft 7 2 Bridges.- t'hle and Ruel; Peterson and Palmlnano, At New Tork Cleveland. , P 0 New York 1 ft 2 Terrell and L. fiewell; Ruffing nd Dickey. At vTnuhiniton Chirago 3 0 Washington fi 0 Lyons snd fiarrity; Iladlej, Mar berry and Rpencer. At Pittsburgh- R. IT. F. Philadelphia fl l 2 Pittsburgh 4 0 3 J. Elliott, Renge nnd Mefurdv: Harris, Hpencer, Osborne, Wood and I- inney, (trace. At Cincinnati Boaton 2 ft ft Cincinnati 3 13 0 Reiboid, Sherdel aud Crooio; Lucas tod Aiby. OPTIMISTIC! J. P. Morgan, above, broke a precedent Monday when he 'granted an Interview expressing himself as optlmlstlo concerning the action of England. It la virtually the first statement to the press he has made on any subject. Short Selling Is Prohibited By Board; Bear Rout Hits Mart NEW YORK, Sept. 21. OP) Prices rnllied with spectacular swift ness on the New York stock exchnnge today after an tyirmous volume of early selling, prompted by the London situation hnd swept principal shores down $2 to $(1. What started as a heavy liquidat ing movement turned into a bear rout before the session was an hour old. Shorts who hnd built up Inrge commitments during the September decline scrambled to cover when the market caught Its breath after the first torrent of selling, doubtless frightened by the market s success in absorbing tlioxe sales us well as by thn governing bonrd's invocation of the rule against demoralizing short selling. Uniled States steel, well supported throughout the first hour, son red nearly $4 a share American Tele phone fully recovered a break of $".( i2. TTnion Pacific jumped $5 net nff or dropping $2.75 nnd flcneral Motors, whkh hnd fallen ?2 sold $1 nbove the Snlnrday Hoxe. American can, Western Union. Bethlehem sled nnd many olhera milled strongly.: Liouidatlon. coming in nnrt from abroad where the London. Berlin and Amsterdam markets wero closed, piled up liugn orreritinn ndfiniHt the open ing. Ko strong was the urge to sen that transfers In Ihe first, half hour swelled to 1,IH).')(K) shares, the larg est volume for thnt period since June li, JiMU. NO SHORT SELLING NEW YORK. Sept. 21. P The New York stock exchnngc governing hoard issued a notico prohibiting short selling jut before the market opened today. Just, before the opening time the stock exchange ticker printed n notice saying tlie exchange would open ns uunl but that the governing com mittee in view of the grave nnd seri ous emergency created by the sus pension ' sold pavmenta in r.nglnnu nt a meeting held curly this morning reaolved that in Us opinion short selling during the present emergency would tend to bring out a condition of demoralization In which prices would not. fairly reflect market values and therefore would violate the pro visions of section 4 of article 17 of Ihe constitution of the exchange. PRICES RALLY Oil EXCHANGE MONDAY Here 's What Happened After Britain's Action (STOCKHOLM. H-pt. 21. (U.R The bank f t.cIou to'lny rnivl Ha li.roiint rnlr- from 4 to T, rent follnwine Iho n'lintKv in tl" Hunk r.1 KmIdikI run from 4',!i I" P" c"1- COPKNHAfiKN. fr.pt. 21. J.B nniir" in Ktm klmlm. Oslo, ami top rnhnum were H"','l toilny waiting oe vflnpmrMit in Lomliin. I In ninli lmtik nnpi-nfli-d anlra and nnrrhnaM ' f'-f-inn rxHiniu but liotln awl railways continued to rppi sterling. jmrSNKLR. NM,t. 21. u.n Stock nrhinifi of Hntcl and Antwern were Hoard today lu to Ibe Hrjtih situation. ttO.MnAT. Sept. 21. lURI Thf stork eirnanf was Hosed todnr un der the president's f tnergenry pow Silver rove three rupees (nnont fm rents rompiired with rinturday's Hose. Cotton rose eight points In an hour. (iold rose ten annna (about rental per tola is.-yen pennr-neights t. The government ordrreii hunks and markets throunhout India to remain Hosnl tomorrow. The victory Issued to ordinance temporarily rclieyivi tb Payments in Britain On Gold Parity To Cease Heavy Withdrawal of Foreign Credit Is Cause WHAT GOLD STANDARD IS' The gold standard of ex change is normally in use by virtually every civilized nation of the world. It is predicated ' on the fct that paper money of a country's bank of Issue la redeemable in gold on demnnd. In the British foreign ex change market, recently with the pound sterling available he low Its gold parity, in relation to other currencies, it has been profitable for banks to acquire sterling pounds in the market, convert them into gold nt par ity, nnd then convert the gold . Into other enrrenciea by ex porting the gold. The pound sterling waa peg ged in New York during tha war at $4.70. It reached this srtificinl height by means of securities sale of dollars held by British citizens. In J9W, It was decided to remove the support, and the sterling dropped, until finally in 1JU0 it hit a new low of $n.ir. The gold standard has been adopted by most every country since the war. (By United Tress) Decision of the British government to suspend temporarily operation la part of the gold standard echoed throughout the world today. Principal stock exchanges of Eu rope closed with the exception of the Paris Bourse where prices reacted sensationally In heavy liquidation. The pound sterling dropped to a sale quotation of $4 per pound in New York, compnred with a close Saturday of $4.84 7-8. In London, the pound wns quoted nt $4.40. In Paris the quo tation was 100 francs to the pound or about fl.30. Gold Prloe Drops The prlco of gold la London fell from f shillings HVj pence to 84 shillings 0 3-4 pence today. Immediate effects In commodi ties were to Increase prices abroad. Liverpool cotton shot up sharply as did metals In London. In Bombay silver and cotton prices advanced. Liverpool roso 4 cents a bushel. Bankers in New York held hurried conferences to check the first effecta nf the British decision which they an ticipated because of general lack of knowledge of tho situation. Leading bankers In New York did not believe the situation serious so fur ns this country wns concerned. Americn, nccording to nn Influential banker, has only about $50,000,000 credit in Kngland aside from the re cent limns to the Bank of England which are pnynble in American gold dollnrs. This amount is of no conse quence ns compared with the huge short term credits of America in Ger many, be said. Move Anticipated Brokers and bnnkers in New York nnljcipnted the move and made prep arations for It last week. The stock market in New York declined shnrply Inst week as traders discounted ef fecta nf a temporary suspension of the gold standard. Tha situation means that for the time being England will sut pend payments within tha British empire on the gold parity fixed In 1025 when the gold standard was resumed after a suspension during the World war. iiovernment obligations In foreign countries contracted on a gold basis will be met at the gold rate when they fall due. k . According to a leading American banker the effects of the move will SEE GOLD STORY PAGE 10 goyernment of Its obligation, nuder tha currency act to aril gold it,rltng. Liverpool" fiepr. 21. u. Cotton and wheat prirea soared to ilnr with the fall in yalue of tha pound sterling. Cotton rose $1 hal. while wheat rose from to 4 cent! t bushel. LONDON, Sept. 21. (U.B Tha price of gold hero was fixed at nomi nal quotation of K4 shillings penre an ounce today. This oomparad with Sutunlny'a quotation of 81 (hill ings HVj pence. HAMllUHO. Hrrmanr. Sept. 21 nj.Ri The bourae was closed Indefin itely today. flKNEVA. Sent. 21. (U.RV SsH, banks were handling only obligation, if Hwitserland today and refraining; from all foreign dealings. It was understood convening of I conference of International banker! at Hasle today or tomorrow wa, un der consideration. PANZiri FHKE CITT, Rept. 21. (U.R Th selwt abolished th co-r,- IbeFmarKETS STORtt, PAGE 10
