GREEK FINANCES

Hawera Star, Volume XLV, 26 January 1926, Page 5

GREEK FINANCES

A FORCED LOAN. DICTATORS’ SURPRISE MOVE. VALUE OF BANK NOTES REDUCED BY CABLE-PRESS ASSOCIATION—COPYRIGHT ATHENS, Jan. 24. The Greeks woke up this morning to {earn that unwittingly they liad 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 the bank notes in circulation, except for notes of 25 drachmas and under. Money deposited in bank notes will be cut, and the detached portions eventually exchanged for scrip in a loan of 12,500,000 drachmas at six per cent. There will also be annual drawings with prizes of ten aiil'ion drachmas. The Government hopes thus to teach a salutary lesson to those who hoarded their money and thereby helped to cause the present shortage of paper currency.—Reuter. The decree was accompanied by a circular explaining that the object of the loan is to clear up the financial, situation. The proceeds will be utilised for the redemption of the floating debt. The Premier, M. Pangalos, in an interview, declared that the loan would avert the necessity for recourse to inflation and enable the people to save, thereby increasing the purchasing power aud, contributing to the restoration of the na. lion’s fiiian ce s.—Reute r.