FRENCH GOLD SMUGGLERS

Dominion, Volume 12, Issue 282, 25 August 1919, Page 6

FRENCH GOLD SMUGGLERS

Information is to hand from tho Riviera concerning the mysterious doings of gold smugglers (says the Paris correspondent of the London "Daily Telegraph"). It. is becoming clear that the. jewel broker Grassi had many accomplices iu draining gold out of France. His operations were mostly confined to tho South of France. Every week, it. is averred, he handed over some to his Italian partner, who carried the gold in a small boat to Italy. Other arrests are expected. The smuggling organisation under tho leadership of Alexandre Grassi comprised two descriptions \if associates —beaters mid collectors. Those who beat up for gold wero waiters in the towns, horse dealer? and drovers in the country districts, whoso mission it was discreetly to solicit travellers; - customers, and peasants who wero supposed to be hoarding gold., They offered ns much a 9 110 francs in liimk notes for 100 francs in gold. The receivers throughout the South of France were small tradespeople and dealers in 'second-hand jewellery, who tho. gold collected in •their respective'districts. The collectors paid the beaters 150 francs in paper for 100 franos in the precious _ metal. Grassi visited the receivers in his powerful motor-car, and paid a stiff commission in return for the com.

In France theso operations were kept secret, ibut.ncross tho frontier tlie traffic was done' opeoly. Travellers over the border coming from Franco were pestered. by touts offering not only to 'pay a. high price for ftvery gold coin, but also to buy. French bank, notes. Tho centre of the organisation of theso gold exporter.? is at Turin, where, it is sai.d. brokers, and even bankers, indulged openly in this remunerative trade. Those who usually brought tho precious metal were not professional smugglers, but amateur defrauders, people coming to Italy on business or pleasure, who had succeeded in hiding from the French Customhouse officers a few pounds' u'orth of gold, and exchanged it at a hondsomo profit. Theso people little dreamt, perhaps, that they, were working in tho interest of Germany. It is asserted bore that all the French gold drained from France and collected in Italy goes into the national coffers of the new Gorman Republic. ' Tho German Government endeavours by tho service of a number of spies to lay hands; on as much gold as possible for financial reasons that will readily be understood. Tho trade ill gold c'ost-s Germany deaT, but as tho precious metal is paid for in' German bank notes, and as these are issued wholesale, the business is a profitabla speculation.