FRENCH CURRENCY

Evening Star, Issue 22454, 26 September 1936, Page 15

FRENCH CURRENCY

RAISING OF THE BANK RATE VIOLENT FLUCTUATIONS IN MARKETS Press Association—By Telegraph—Copyright PARIS, September 24. Violent fluctuations in all markets followed the raising of the discount rate, and the Bourse was feverish; but it is acknowledged that the Government demonstrated its determination to defend the currency. REACTIONS IN AMERICA. v WASHINGTON, September 24. _ Reports from Europe that the crisis of the franc may soon force France off gold, and the indication that Britain is willing to accept such an eventuality without counter devaluation, were used in speculation to-day concerning the likely course the Treasury will follow. There is no official confirmation here that the Government will not devalue the dollar to meet the franc, but it is thought very unlikely that it will do so. In the first place, devaluation of the frano is considered as opening the_ way to the negotiation of an international stabilisation pact, which is desired here; secondly, President Roosevelt is not likely to give the Republicans’ campaign ammunition in the form of further tampering with the dollar. Heretofore the Treasury’s invariable reply to questions with regard to the dollar is that the Government is operating on the 24-hour basis. To-day, however, no comment has been made on the French situation, indicating the possibility that it has been agreed to join Britain in allowing France to go off gold without retaliation.