EXCHANGE SLUMP.

Hokitika Guardian, 10 March 1924, Page 2

EXCHANGE SLUMP.

franc stii.l low fir ILSXK/.LIAN AND N. 7.. CABLE ASSOCIATION. NEW YORK. March 8. The Fteuch taxation crisis lias ranscl the franc, w liicli lias been steadily declining during tlie week, to reach down u> only 2.7 cents constituting :l '>dv low Yei/jnl. Tlie uncertainty of the Continental exchanges is thereby aggiaynied, affecting sterling, "Lidi reached 428.5 cents, after holding .steadily at 43C during the past three weeks. LONDON. .March «• French francs touched a liesb hi" ex ord of 113.75 to the >. i iod •lo ol vesterday at 112.85. Belgian fvqmqf have depreciated to 130.0. to the .Cl., a- n! closed at 12 1 . 1 5. r |'l:e “Daily Chronicle’!?” Parts correspondent states the fall ol tlie Dane is attributed to the Bank ot 1* ranees wu-klv statement recalling that the add lion of 92] millions of francs in notes tilings the currency within two milliard.- of the limit. The Bank ollicially attributes tins increase in end of the month settlements. Tile newspaper “Action Framai-e" says: "Beware of tlie inflation. The Dane has nothing to do now. lull to fellow the Geiinan Republic.’’ FRANC’S DECLINE IN U.S.A. STERLING STILL FALLING. (Received this day at 8 a.m.) NEYY YORK, March 8 The franc continues its downward course, reaching .3.12 cents. Other European currencies are also declining sympathetically. sterling reaching 125;. Belgian. Italian and Dutch moneys suffered smaller losses. Belgian and French francs a year ago were higher than the lire. but. due to Mussolini's budgetary reform which ieolisidcred one of the outstanding achievements of recent international finance, the lire has steadied. FALLING FRANC. A DrSASTF.It FEARED. (Received this day at. 10 a.m.) LONDON. March 9. The fact that the franc to-day js/ worth twopence has attracted widespread attention. The Observer’s editor says the position is causing the utmost anxiety in the oily for ii K realised that were France m pin the lia-j t ion's whose currencies have become j praeiicallv wort hie-- the efiot-l- would; lie far reaching and disastrous. The! depreciation i- an alarming symptom which has been -cell before in many Case- of debased currencies ill Europe. I Three- iarises have contributed, firstly j bad national finance. France having i borrowed from her people instead of j Fixing them; secondly, vAirld-wiife | speculation; thirdly, currency infill- 1 tion. Eleventh hour effort- to put the! national finance- in order have nol j in-pired confidence. 4ho Sriutn* ami; M. Poincare are at loggerheads amlj what may be the outcome it i- im-l possible lo foretell. Meanwhile the I printing pit'csses are getting busy and: with rising prices everywhere tlie de- j maud for currency grows in volume. | M. POINCARE S DILEMMA. j (Received this day at-It) a.m.) j LONDON. March The "Sunday Express” say- the, franc is falling and bringing YL Poincare down with it. It is his policy, and no other that has knocked the bottom out of French credit. The. franc, liominallv wortll ninepenre hubpenny, would only buy twopence ti-rlay. On the other hand, Germany’s currency is nl! lint stnbib-r-I M. Poincare's dilemma is that ii he want- money from Germany in order to save the franc from collapse and himself from ignominious defeat at the coming elections, he must leave the Ruhr and eat every word he has spoken during the last fourteen months. |