BANKERS FEAR GOLD PANIC

way above the $110 an Bounce mark yesterday amid indications from all over the financial world that the monetary crisis ing to unload at all costs. now completely out The upwards spiral of gold sald that the were was turned into a mad uncontrolled scramble as the feeding'.

United States announced a huge balance of payments de- in the gold price, the present ficit. The deficit was $10,227m for the first quarter of this year compared with only $1,6l6m for the last three scope of a stampede. months of 1972.

Panic fears of another huge entering new crisis. People dollar devaluation drove the gold price in London from a morning fixing of $107 an ounce (itself up $4.25 overnight) to selling crashed against his $110-$113 in hectic trading after desk. lunch. parity of sterling, like Common Market imposing emermost Europe n currencies, gency tariffs to keep out US floated upward very sharply goods which have cheapened by against the dollar. The pound nearly 25 per cent in 18 months was being quoted at over $2.57 of successive devaluations. yesterday afternoon. Holders of Pressure is also growing for dollars were reported to be tryyet another revaluation of the West German mark, the fifth in The gold price has risen over less than four years. $10 since Monday morning and A leading West German banthe Midland Bank's foreign ex- ker said traders were holding change manager increases were back payment of dollar debts hoping to settle them more 'totally irrational and self- cheaply in a few day's time.

He also reported a growing In contrast to previous rises tendency for 'small' central banks to turn their reserves upward trend has continued for from dollars into marks, despite days without even a temporary the negative interest imposed on downturn. It has taken on the such holdings by the Bonn government. • 'It looks as if we could be Wall Street is plummeting under the impact of the Nixon seem to be beginning to panic, scandal which has now engulfed one foreign exchange dealer national security adviser Henry commented as the wave of dollar Kissinger, further undermining Nixon's political authority in foreign as well as domestic There is serious talk of the affairs.

An even worse fidence is likely from the involvement in the scandal of the newly-appointed head of the Securities and Exchange Commission, G. Bradford Cook.

Cook is said to have spoken with Maurice Stans, the former Commerce Secretary now charged with accepting $200,000 bribe from shady financier Robert Vesco.

News of Cook's involvement came at the end of one of the worst days the New York stock exchange has seen for the last ten years.

The scene is being set for a money panic of enormous proportions under conditions of intensifying trade war and at a time when the political ano economic crises are merged into a single uncontrollable problem for the world bourgeoisie.

The fight to transform the Socialist Labour League into the revolutionary party is the only way in which the workers' movement can be prepared to meet the enormous implications of the monetary and political situation. OUR total is £: 9.87 Socialist Labour Igue branches sent in:

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Party Building Fund Clapham High London SW4 FOUNDRY workers meeting in Oban yesterday voted to tell their union national executive to pursue a pay increase of €5.50 a week. The delegates, representing members of the foundry section of the Amalgamated Union of Engineering Workers, also voted for future negotiations on wages and holidays to be conducted at national level.