Exchanges

Last Monday, all businessmen were shocked to read in their morning papers that the British pound sterling was no longer based on gold (see p. 19). The Tokyo Stock Exchange had announced that it would not open. Tokyo was followed by Bombay, Calcutta, Johannesburg, London, Berlin, Amsterdam, Copenhagen, Vienna, Oslo, Stockholm, Brussels, Athens. The Paris Bourse opened, but limited all trades to 5% of all holdings and no dealing in foreign exchange. Montreal's Exchange opened similarly restricted. The New York Stock Exchange remained open but, as in dark November 1929, short selling was forbidden. In the artificial market thus created, stocks gyrated unsteadily, closed higher; bonds closed at lows for the year.

Active champion of natural markets has been Richard Whitney, president of the New York Stock Exchange. Only last week, as world events were marching unseen towards England's crisis, he declared to the Merchants' Association of New York: "The ancient law of Supply & Demand has not been abolished. . . . It is destined to be of enormous significance in the future recovery of business."

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