FINANCE OF FRANCE.

Auckland Star, Volume 55, Issue 63, 14 March 1924, Page 5

FINANCE OF FRANCE.

THE FRANC RALLIES. AID FROM THE ALLIES. FIGHTING TEE SPECULATOR. (By Cable.—rrcss Association.— Copyright.; LONDON, March 13. The French franc steadily appreciated to-day to 102/10 to the pound and closed at 105.37 to the pound, against 114.80 yesterday. The Belgian franc rallied sympathetically to 120.75 and closed at 125.25 to the pound. The sudden recovery of the franc is due partly to London credits, which the Bank of France used to sell sterling and buy in francs, but still more to the Parts agents of J. P. Morgan and Sons selling dollars in masses to all-comers on the Paris Exchange. "Bears" were caught completely unprepared. They wilted and then recovered. Finally they broke again and were routed. It is understood that Morgans have arranged a 50,000,000 dollar loan toward France's war treasury in the fight for the franc. Rents rose' a couple of francs in sympathy with the franc. The "Daily Telegraph's" political observer says that the French Government intends to fight for the franc by buying all quantities offered by speculators and then inexorably demanding real delivery instead of permitting settlement on margins. France has been studying the methods that Count Witte used in the nineties to stop speculations in the Russian rouble in Berlin. On one occasion a carload of gold was sent from Russia, and the firm of Mendelssohn was ordered to buy tin all roubles offered for a week. At the end of the week Mendelssohn's demanded delivery. The Russian Ministry of Finance, was besieged by speculators clamouring for mercy, which was only given on conditions which forced them to leave the rouble alone for many years.— (A. and N.Z. Cable.)