FRANC'S DRAMATIC RISE

Dominion, Volume 20, Issue 51, 24 November 1926, Page 11

FRANC'S DRAMATIC RISE

FRENCH FINANCIERS BEWILDERED

PARIS MADE THE DEAREST CAPITAL IN EUROPE

SHOPKEEPERS BADLY CAUGHT

A dramatic rise in the franc has bewildered French financiers, and resulted in making Paris the dearest capital in Europe. Shopkeepers have been badly caught, their shops being deserted, in addition to which they fear that British tourists will not visit Paris at Christmas. By Telegraph.—Press association Copyright. Paris, November 22. France is faced with a new franc sensation. Strangely, it is not a dramatic fall, but a dramatic rise upward to 123 to the £l, against 147 last week. This has left financiers in a state of bewilderment. Public opinion realised that a serious economic crisis was likely to arise from over-rapid deflation dealing a heavy blow at trade, making money tight, reducing exports, and increasing imports. The situation at present is as bad as in July, when the franc dropped to 240 to'the £l. Meanwhile absurdly high prices are based on that rate, making Paris the dearest instead of the cheapest capital in Europe. Shopkeepers who thought to make a fortune out of foreigners were badly caught. Those who were recently clamouring for a tax. to be levied on foreigners are grumbling that they will be ruined because British tourists will not be. coming to Paris at Christmas. Shops are deserted, and people are not purchasing, being afraid of what is going to happen. The scenes when the Bourse was closing business were most remarkable, and every telephone and cable to foreign centres was engaged. There were the wildest fluctuations, and men stood with pale faces watching ruin creep upon them.