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Auckland Star, Volume LXVIII, Issue 154, 1 July 1937, Page 7

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monetary policy.

Britain and America Working With France.

adjusting situation.

British Official Wireless.

(Received 12.30 p.m.)

RUGBY, June 30,

Replying to a question on French monetary measures in the House of Commons, the Chancellor of the Sir John Simon, said it as generally recognised that h!v J^u nent ° f the franc in September, 1936, was not entirely successful re-establishing lasting equilibrium between the economic system in * ranee and those in the United States and Britain, such as was the underying object of the tripartite agreement. &

I understand that the measures now contemplated by the French Government, which involve removal of upper and lower gold limits now prescribed for the franc, are addressed to adjusting this situation.

I have been assured, however, by the French Government that it is not its object to seek any exchange advantage from this adjustment, and it is anxious to continue close co-operation with the Governments of the United States and -Britain.

This is also the strong desire of the British Government, and I am in close touch with the French Minister of finance and the Secretary of the United States Treasury with this object in view."

FRANC UNPEGGED.

NEW DECREE ISSUED

(Received 12.30 p.m.) PARIS, June 30,

The Bourse will reopen to-morrow. A decree replacing the Monetary Act of 1936, which effected the last devaluation of the franc, says the gold value of the franc will be "fixed later. The relation of the franc to foreign currencies will be regulated by a stabilisation fund until conditions of convertibility of Bank of France notes into gold are decided.

Tlje franc, therefore, is being unpegged from gold and will follow the pound, finding its own level and being inconvertible into gold at any fixed level.