AGREEMENT SEEN AS STEP TOWARD PEACE.

Auckland Star, Volume LXVII, Issue 230, 28 September 1936, Page 7

AGREEMENT SEEN AS STEP TOWARD PEACE.

MONETARY PACT. Other Countries Expected To Be Joined. ECONOMIC EQUILIBRIUM. British Official Wireless. (Received 12.30 p.m.) RUGBY, September 27. The French Minister of Finance, IM. Auriol, commenting on the monetary agreement, said that it constituted the beginning of monetary .peace, of economic peace, and of human peace. The agreement between Britain, France and America, to which would shortly be joined other countries, such as Belgium, would, lie was convinced, complete the action of three great democracies. It would bring about equilibrium in the economic situation. "We will endeavour to mitigate whatever inconvenience may be caused," he said, "and the Government wishes to avoid social hardships and to consolidate social peace. The Government will propose to Parliament the requisition of gold at the present rate." A communique published in Paris states that the value of the franc will be reduced to a level comprised between 49 and 43 milligrammes of gold. A gold value of 47 milligrammes is equivalent to 107 francs to the pound in present conditions. "The Times" Paris correspondent says that, based upon present relations between British and French price levels, purchasing power of parity of the franc lies between 95 and 105 francs to the pound.

OTHER REACTIONS. CONTINENTAL COUNTRIES. LONDON, September 27. A message from Amsterdam says it is officially announced that the maintenance of the gold standard by Holland is no longer possible owing to the action of France and Switzerland. The Government had announced yesterday that it was maintaining its monetary policy unaltered, and the Prime Minister, Dr. Colijn, said that the devaluation of Swiss currency was not altering Holland's determination to maintain the gold standard of the guilder. This sudden change of policy created general surprise. The Bourse will be closed on Monday and Tuesday. The Dutch Government and the Bank of the Netherlands have decided to place an embargo on the export of gold as from to-day.

According to a dispatch from Berne, the Swiss' Government, after a long conference, announced its decision to devalue the Swiss franc. It will submit proposals to the Chamber on Monday. All the Stock Exchanges will be closed on Monday and Tuesday. The Belgian Government, says a message from Brussels, is adhering to the Franco-British agreement and is not devaluing the belga. A telegram from Warsaw states that Poland is not following the devaluation measures of France and Switzerland. The Italian Cabinet, according to a message from Rome, will meet on Tuesday to discuss its financial policy. Italy will participate in the stabilisation agreement if she is invited to do so. HOLLAND AND GOLD. FORCED TO LEAVE STANDARD. (Received 11 a.m.) AMSTERDAM, September 27. A Government statement says that Switzerland's decision to devalue lias forced the Government to reconsider its attitude. There is now no possibility of maintaining Holland's monetary policy unchanged as she is the only country in the world on the gold standard. Therefore, the Government feels the highest degree of pressure on the exchange rate and gold reserves and so, in order to avoid being forced off the standard by weakening of reserves, has decided to place an embargo oil export of gold.