GREEK INFLATION

Greymouth Evening Star, 3 November 1944, Page 5

GREEK INFLATION

CURRENCY COLLAPSE LONDON, November 2. “The Greek Government is preparing measures to stabilise tne drachma, which yesterday slumped to 20,000,000,000,000 to the pound,’ says the Athens correspondent of the “Daily Express.” “This is 20,000 times worse than the lowest rate ever reached by the ’German mark. The cheapest purchase in Athens to-day is the daily bread ration of 10 ounces, at a cost of 180,000,000 drachma.” The Athens correspondent of “The Times” says the drachma has fallen 1300 per cent, since the arrival of the British troops, and there is talk of the abandonment of the drachma in favour of tickets, or a similar device, until stabilisation can be effected. A military liaison spokesman today said that although food conditions generally in Greece were not quite so bad as had been expected, they were terrible in certain areas. The British could not be expected to put things right in a few days. The ultimate restoration of Greek economy might take years. It might even take a few months “to get things going.” ‘Seventy-five per cent, of the Greek population would have perished but for the magnificent work of the International Red Cross,” he. continued. “Greece’s financial position is basically sound in the sense that there are no external debts, and the Government has large funds in London and New York. Admittedly, the present note circulation is astronomical in figures, but is actually insignificant. The Germans, in attempts to ruin Greek finances, brought in 1,500,000 British sovereigns, and it is estimated that there are another 500,000 circulating. These are worth, at present rates, £12,000,000 sterling, which is a very comfortable asset once stabilisation is achieved- and the country is on its feet.”

BRITISH NAVAL SUCCESSES LONDON, November 2. In Northern Greece British patrols are harassing German forces north of Salonika. The Germans evacuated Salonika, and when the British entered the city they received an. anthusiastic welcome from the civilian population. Stating that naval operations have been greatly intensified in the Aegean Sea in the last six weeks and that British units have played a large part in harassing the German withdrawal from Southern Greece and the islands, - the First Lord of the Admiralty (Mr Alexander) announced that naval forces have sunk 31 enemy warships, transports of- varying sizes, and 40 small craft. Many of the vessels were carrying German troops. Sixteen warships and merchant ships and 15 small craft werg severely damaged. Naval aircraft have attacked enemy installations, and in support of the land forces many bombardments have been carried out.