FRANCE'S NEST EGG.

Manawatu Standard, Volume XLVII, Issue 123, 22 April 1927, Page 5

FRANCE'S NEST EGG.

£18,000,000 IN GOLD

ECHO OF WAR FINANCE,

LONDON, April 6, The Bank of France’s £18,000,000, in gold, deposited in London during the war as security for a loan, and which has since been the subject of much controversy and misunderstanding, is likely to be immediately returned.

According to reports, an agreement has been reached- between the governors of the Banks of England and France.

It is understood that the governor of the Bank of England, Mr Montagu Norman, accepted an offer for the prompt payment of £33,000,000 of the outstanding loan in exchange for the restoration of the gold. Much of the hostility exhibited towards British tourists in France is attributed to the retention of the gold, which sections of the French community were led to believe was shipped to London for security against German plunderers. Later, when the money was not returned, they charged England with speculating with their money in America.

AN IMPORTANT POINT. A question now agitating both England and French financiers is whether the gold is included in the Bank of England’s reserves, or is held in a separate account and is available for immediate delivery. It is contended, if the gold is included in the reserves, that the , transference of such a sum would greatly deplete bullion resources and react for a considerable time upon trade and industry. The present uncertainty is restricting banking activity.