FALL OF THE FRANC

Evening Star, Issue 18533, 16 January 1924, Page 6

FALL OF THE FRANC

A FRENCH GOVERNMENT BLAMED. Press Association —By Telegraph—Copyright. NEW YORK, January 14. Sterling closed at 4.22id01, and the franc at 4 2-10 cents. Observes are greatly exorcised over the technical collapse of the French exchange. A Wall Street journal’s expert declares that Franco’s official announcement blaming Germany for the decline of the franc fails to account for tue real cause—namely, that the French Government did not attempt to curb the unproductive expenditures which wore the cause of tho huge Budget deficits. Tho writer declares that American bankers generally deplore France’s apparent tendency to employ a palliative instead of fundamental methods to restore the stability of tho franc, and they hope that the present depression will impress on Paris the importance of adopting a sounder policy.—A. and N.Z. Cable. PANIC ON BOURSE. MINISTERS CONFERRING. LONDON, January 15. The ‘Morning Post’s’ Paris correspondent says that the catastrophic fall of the franc is the only topic of conversation in all circles. Alarm and distress were the dominating notes on the Bourse, where a fall to 96.25 was not anticipated by the most pronounced pessimists. A wave of indignation swept the Bourse when the Italian lire for the first time since paper monev was introduced rose to a premium of 101.20 to tho 100 francs. The only possible explanation of tho sudden collapse of tho franc is that French investors, large and small, have become alarmed at the turn things are taking, and are selling French securities in order to buy foreign money. An’ important conference was held at the Ministry of Finance relating to the franc, after'which it was announced that measures had been considered with a view to securing the sternest curtailment of public nxnouditure and an increase of the revenue, The Ministers will meet to-day to consider the same subject.—Reuter. A STATE OF TENSION. GOVERNMENT'S STRINGENT MEASURES. PARIS. January 15. (Received January 16. at 11.30 a.m.) The fall of the fra.no bias caused the greatest anxiety. The Commercial ExchnniGO h;w suspended the (puiblioaitiori of official prices for cereals, sugar, and oil. which dtep is only taken in grave emergencies. It is understood that M. Poincare and Ids Ministers conferred and decided to prohibit spec illation "in futures, combined with the publication of one exchange rate for each .conin'try daily. Stringent measures will be taken agaiinrt foreigners and Him circulation of posrirreistic reports re nardimg the Stock Exohangc.-t-A. and N.Z. Ooible.