FRESH CRISIS IN FRANCE

New Zealand Times, Volume LIII, Issue 12612, 24 November 1926, Page 7

FRESH CRISIS IN FRANCE

FRANC APPRECIATING TOO RAPIDLY PARIS SHOPS DESERTED. Australian and N.Z. Cabla Association. ‘ PARIS, November 22. France is faced with a-' new franc sensation. Strangely, it is not a dramatio fall, but a dramatic rise upward to 128 to the £, 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 evports, and increasing imports. The situation at present is as had as in July, when, the franc dropped to 240 to the £. 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 Christinas. 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 engfiged. There were the wildest fluctuations, and men stood with pale faces watching ruin creep upon them.