CAUSING A CRISIS'

Evening Post, Volume CX, Issue 144, 16 December 1930, Page 11

CAUSING A CRISIS'

PESETA'S LOW LEVEL

All Spain, troubled by the inexpli. able fall of the peseta, is wondering if the monarchy itself is in danger, reported the "New York TimesV* Madrid correspondent recently. Republicans are openly rejoicing at thai situation, hoping it will make th»' monarchy unpopular. The monarchist newspaper, "La; Nation," has said that the fall of the peseta was due to a despicable manoeuvre of known financiers, who made fortunes in other times and now ara increasing them at the cost of tha nation. The Government, says this newspaper, should make a drive against these unscrupulous profiteers, isolate them and inflict severe punishments,, thus ending their unpatriotic actions. Otherwise, "La Nation" contends, Spain will sink to a position of ignominious unimportance. During the dictatorship of General Primo de Biv'era, asserts "La Nation,'* these speculators did not dare to go too far, but now they are free to do all the damage they can. "La Nation" suggests the following as remedies:— Only the Bank of Spain should b« allowed to buy foreign bonds for persons really needing them, and the amount should bo limited to proved! needs.. EXCHANGE SUSPENSION. Temporary suspension of all foreign:: money exchange in Spain, with only; the Bank of Spain and its branches allowed to quote official exchange rates. A list should be kept of all persons and corporations acquiring foreiga' bonds, with the amounts and reasons) for the acquisition. Exportation of capital should b» severely restricted arid heavy punishments inflicted for infringement of regulations. A strict watch should be kept on. agents of foreign firms said to be working for the peseta's depreciation to force Spain to make concessional which the dictatorship resisted. Finally, any proved act against the peseta should entail the imprisonment or banishment from Spain of the author. Although "La Nation's" proposals are considered drastic, undoubtedly; Spanish opinion supports the_ punishment of speculators and inclines tof view them as enemies of Spain. In the meantime, San Sebastian, Santander, and other north coast resorts are overflowing with visitors from France, buying Spanish commodities while they can benefit by the low prica of the peseta. The steady slump of the peseta, which has puzzled Government officials and. financial experts for several months, resulted in August in, the resignation, of Manuel Arguelles from the Minis* try of Finance. DISSATISFIED. The Cabinet accepted his resignation at a special meet big and appointed Julio Wais, hitherto Minister of Economy, to succeed him. Luis Rodriguez Viguera, a Minister of Agriculture in the Conservative Cabinet of 1922, succeeded Senor Wais. While the Government did not blame Senor ATgueiles for the depression ia the Spanish monetary unit, the Minister was dissatisfied with the financial situation and insisted on resigning. Eeports have been frequent that Senor Arguelies had attempted to vesign several times heretofore during fluctuations of the peseta, but had been dissuaded by his colleagues. This was the first resignation since the Berenguer Ministry took office ia January, after the fall of the Primo de Eivera dictatorship. While the peseta fluctuated for several months, it fell to a record lowlevel, a value of slightly more than sd, whereas nominally it is 25.22J to the pound sterling. That brought Premier Bercnguer and other members of the Cabinet rushing back from their holidays, and a. series of special Cabinet meetings resulted. On the Bourse the peseta has recently lieoit quoted at 45.15 to the pound sterling. TTiat has been some improvement on recent figures.