CURRENCY SLUMP

Gisborne Herald, Volume LXXI, Issue 21552, 3 November 1944, Page 3

CURRENCY SLUMP

PLIGHT OF GREECE STABILISATION MOVE SEVERE FOOD* SHORTAGE <lO a.m.) LONDON, Nov. 2. The Greek Government is preparing measures to stabilise the drachma, which yesterday slumped to 20,000,000,000.000 to the pound, states the Daily Express correspondent in Athens. He adds that 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 Times’ correspondent in Athens says that the drachma has fallen 1300 per cent since the arrival of the British troops. There is talk of abandonment of the drachma in favour of tickets or a similar device until stabilisation can be effected. The military liaison spokesman to-day said that although food conditions generally in Greece are not quite so bad as expected, they are terrible in certain areas. The British could not be expected to put things right in a lew days. The ultimate restoration of Greek economy might take years. It might even take a lew 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. Greece’s financial position was basically sound in the sense that there were no external debts and the Government had large funds in London and New York. Admittedly the present note circulation is astronomical in figures, but it is actually insignificant. The Germans, in attempts to ruin Greek finances, brought in 1,500,000 British sovereigns. It is estimated that there are another 500,000 circulating. These are worth at present rates £12,000,000, which, is a very comfortable asset once stabilisation is achieved and the country is on its feet.