FALL IN GOLD CURRENCIES

Evening Star, Issue 22033, 20 May 1935, Page 12

FALL IN GOLD CURRENCIES

FINANCIAL CRISIS EXPECTED / FRANCE IN SERIOUS DIFFICULTIES Press Association—By Telegraph—Copyright LONDON, May 19. (Received May 20, at 11 a.m.) The fall in Continental gold currencies, which many believe will lead eventually to their devaluation, has become’ swifter. Dutch guilders and Swiss * francs have been subject to genuine liquidation and speculative at- 1 tack. The centre, of the pressure is how. the French franc. The volume of selling became heavier during the weekend, and British -authorities were obliged to use the exchange equalisation fund to keep the rise in sterling within The French Government is endeavouring to restore confidence. The ‘ Germain Martin ’ made the statement . that no devaluation would occur. j Public feeling in Franc© regarding the, prospects of inflation and devaluation, however, is noticeably weakening. t The ‘Observer’s’ 1 financial - editor says there is no ignoring, the seriousness of France’s difficulties. The revenue is woefully below the estimates, the exports are falling, and the Government’s refunding operations are handicapped by the decline in its credits. All signs point to an oncoming crisis, with the possibility of a fall in the franc. DELIBERATE CAMPAIGN OF DEVALUATION , ‘ PARIS, May 19. (Received May 20, at 10.5 a.m.) • There is no doubt that a deliberate campaign of devaluation is in progress here, and is rapidly gaining supporters. The Government is being much criticised, not always fairly, and it is predicted that it will be short-lived. The financial editor of 4 Le Temps ’ compares Friday’s Bourse session with the scenes prior to the establishment of the Poincare franc, and warns the authorities to act decisively. ‘