A FORCED LOAN

Gisborne Times, Volume LXIV, Issue 11011, 26 January 1926, Page 5

A FORCED LOAN

GREEK EFFORT TO RESTORE CURRENCY.

LESSON FOR MONEY HOARDERS

United Press Assn.—Copyright.) ATHENS, Jan. 24. The Greeks woke up this morning to learn that unwittingly - they all become creditors of the Government by virtue of a decree issued last evening, ordering a forced loan to be carried out by a 25 per cent, reduction of the nominal value of oank notes in circulation, except notes of 25 drachmas and under, and the money deposited in batiks. The bank notes will be cut, the detached portions eventually exchanged for scrip in a loan of 12,500,000,000 drachmas at six per cent. There will also he annual drawings with prizes of iO,OUO,OGO drachmas. The Government hopes this will teach a salutary lesson to those who hoarded money and thereby helped the cause- of the present shortage of paper currency. The decree was accompanied by a 1 circular explaining the object of the loan is to clear up the financial position. Proceeds will be utilised for the redemption of the floating debt. The Premier, General Pangalos, interviewed, declared the loan would avert the necessity for recourse to inflation and enable the people to save, thereby increasing the purchasing power and contributing to the-restora-tion of national finances.—Reuter.