SWISS TOO RICH

Greymouth Evening Star, 14 January 1933, Page 5

SWISS TOO RICH

CHOKED WITH GOLD

I LAUSANNE, November 15. One of the most interesting and paradoxical situations in the troubled and complicated world of international trade and finance is to be found to-day, in Switzerland, once the playground of Europe. Gold is destroying Switzerland. Slowly but surely it is drying up trade, the lifeblood of the country. This is due to the embarrassing surplus of it. Switzerland, in gold, is the richest country in the world. For every franc of paper money issued, 98 per cent, of it is covered I by gold on deposit in the Government [vaults. This, at one time considered the strength of the country, has now become, as far as trade and consequent prosperity are concerned, an intolerable burden, and its greatest weakness. It. has made Switzerland’s money so expensive that it no longer pays neighbouring, countries to trade with her, and has cut in half the golden stream of tourist traffic. Railways and hotels are the two greatest industries in Switzerland. Millions of Swiss francs are invested in the railways and hotels. Both these industries are dependent for their profitable working on the tourist traffic. Lagt year, and during the winter of 1931-32, it dropped 60 per cent., mostly due to the decline of British tourist traffic caused by tire fall in the pound and the determination of British people to winter at home—also by a great exodus of British people domiciled in Switzerland. At Montreaux, where there was a colony of 1200, there are to-day fewer than 300 people. At Lausanne the British tourists during the past year I numbered only 8455, and so came afteiFrench tourists with 16,354 and German tourists with 10',205.So it is throughout Switzerland. The hotels are empty, the beautiful tourist towns deserted. In Montreux, usually so full of movement and life, the “List of Visitors” is no longer printed and published. There are not enough names to make it worth while. This year there has been an estimated railway deficit of 60,000,000 francs, the closing of many hotels and the bankruptcy of others. At the present time there is hardly any movement in ■ the tourist traffic, and grave fears are entertained regarding the coming winter season. Efforts have been made to counteract the various adverse factors. Hotel prices have been Cut 20 pei- cent. The railways are this winter offering special rates. But there has been no appreciable drop in the price of living. Milk, as an example, the lifeblood of the peasants, with its rich by-products, butter and cheese, remain at a high price. The peasants are so strongly organised that they make any Government action against their interests impossible. To touch farm products would overthrow the whole Peasant Party in revolt and cause the fall of the Government. The watch industry, so badly hit by the tariff imposed by America- on Swiss watches two years ago, is in a critical condition. There are watches enough in the workshops to enable manufacture to stop for three years and yet still be able to supply the trade. \ Thousands are out of work; many are hungry. There is no dole or organised assistance. A;n oufrof-WQrk goes to the police station and gets soup and a bed. But sometimes relief is voted to an industry. Recently—a few days ago, in fact—l,soo,ooo francs was voted for the relief of depressed people in the watch industry. Dissatisfaction and disaffection are widespread. Switzerland is too rich. Paradoxical as it may seem, British, French, Italian. and German people cannot afford to buy its money or goods.