JUGGLING WITH FRAUDS

Evening Star, Issue 19407, 16 November 1926, Page 9

JUGGLING WITH FRAUDS

POINCARE’S TRIGKS LONDON, November 4. Instead of.trying to bring the franc back to a higher exchange value the Poincare Government is secretly rigging the market to keep the franc down, and has sold millions of paper francs abroad, just ns the Germans did in their period of inflation. This allegation was made by the highest financial source, and is based on the knowledge of five big London banks. It is alleged that for months past the French Government, while ostensibly buying francs, has been secretly selling them in the markets of tho world, and accumulating large stores of pounds, dollars, and guilders. It is declared that in this way. the. French have accumulated a reserve as large as the Morgan Loan in foreign currency, and that now France’s position is secure in foreigncredits against sound money deposits without interest, instead of paying interest on loans. If the franc still continues to fall the Government can reconvert the money into francs at a largo paper profit and bo able to finance internal French operations on a paper basis. It is understood that tho London financiers’ first intimation _to the scheme came from German financiers, ■who were struck by the similarity in tho franc's movement to those ot tho old German mark, during the period of the German inflation.