TURN OF TIDE

Wairarapa Times-Age, 6 May 1938, Page 8

TURN OF TIDE

FOLLOWING ON FRANC DEVALUATION EMBARRASSING RETURN FLOW OF CAPITAL PLETHORA OF FOREIGN CURRENCIES By Telegraph—Press Association. Copyright. (Recd This Day, 12.38 a.m.) PARIS, May 5. Enormous amounts of exported capital are pouring back to France. The influx is so great that the Bank of France is unable to handle all the transactions, and has refused to accept amounts below £lO,OOO. It is estimated that the French Equalisation Fund has acquired foreign currencies to the value of at least 25 million sterling. The fund’s operations in London netted a further forty millions sterling. A continuation of yesterday’s boom on the Bourse raised rentes a further four points while most industrials were from seven to ten per cent higher.

SHOCK TO ITALY LIRE MAY BE DEVALUED IN TURN (Recd This Day, 12.15 p.m.) LONDON, May 5. The “Daily Telegraph’s" Rome correspondent says the devaluation of the franc has created a painful impression as it is bound to assist French textile exports and the tourist industry at the expense of Italy. Italian business men expect the lire to be aligned with the franc, though, for reasons of prestige, not immediately.