JOINS “DEVALUATION BLOC”— Holland 17th Nation To Slash Her Money

Greymouth Evening Star, 21 September 1949, Page 5

JOINS “DEVALUATION BLOC”— Holland 17th Nation To Slash Her Money

LONDON, September 20 (Rec 11 a.m.).—The world currency picture, clouded and confused by Britain’s devaluation of sterling, was clarified further today. Holland became the seventeenth nation to slash her money and several other currencies hovered uncertainly. In addition to Britain, the countries now in the “devaluation bloc’’ are Australia, New Zealand, South Africa, India, Ceylon, Eire, Canada, France, Iceland, Egypt, Norway, Denmark, Sweden, Finland, Israel, Burma and Holland. Pakistan tonight decided not to devalue the rupee. Pakistan is thus the only Commonwealth nation not to devalue her currency after the devaluation of the pound sterling.

The West German mark is expected to be devalued soon. Still uncertain are the Chilean peso, the Spanish peseta and the Portuguese escudo. These were the difficulties* facing Britons abroad:— BRUSSELS. —Hundreds of franc-less tourists again queued outside the banks and travel agencies only to learn that the suspension of currency business was to continue for another 24 hours/. PARIS. —Cook’s Travel Agency, dealing with queues of tourists, installed a first-aid service. Several women fainted yesterday during a two-hour wait to get money. GEN EVA.—Most British tourists in Switzerland have cash in travellers’ cheques for which no exchange rate has yet been fixed. Reactions Of Money Markets • On the Paris black market today the pound sterling was quoted above the official rate for the first time for I several months —1010 francs, as compared with the new rate of 980. On the Paris stock exchange a sharp rise of sterling securities, especially gold mines was recorded. . Prices fluctuated violently in the Rome and Milan open money markets today, as speculators rushed to make profits. In Rome the lira dropped to the lowest point in two and a half years—962 to the dollar or 12 points below yesterday’s lowest point. In Milan, the lira dropped to 690 to the dollar but it rallied in both cities later and rose to as much as I 645.

■ The Italian Under-Secretary of the I Treasury, Signor Pietro Malvestito, indicated to the press today that the Italian Government hoped the Lira would not have to be devalued by more than 12 per cent. I In Vienna, the Austrian Cabinet unanimously decided that the relation between the Austrian schilling and the American dollar should not be changed.