CURRENCY SCARE

Manawatu Standard, Volume LVII, Issue 110, 10 April 1937, Page 9

CURRENCY SCARE

DEVALUATION OF FRANC. DENIAL IN PARIS. RUMOURS ABOUT U.S.A. (United Press Association—By Electric Telegraph—Copyright.) Received April 10, 11.15 a.in. . LONDON, April 9. Francs are being freely offered at IOSg- to the £. There is a story current in the city that they will bo devalued to 112 s and that simultaneously President Roosevelt will raise the value of the dollar to its legal maximum by modestly cutting tlie gold price to J 4.35 dollars per fine ounce, thus enabling a return to the old sterling parity of 4.86. The equivalent London price of gold would then be around 141 s per line ounce.

The liquidation of gold shares has almost assumed panic proportions. The largest falls have been sustained by companies which are at present in the development stage. Other markets are dull.

A Paris message says the French Minister of Finance (M. Auriol) conferred with the Exchange Equalisation Committee, after which he denied reports that France would allow the franc to fall below the legal limit of 111. He also denied that any modification of the Three-Power Agreement was imminent.

He declared there was no reason for disquiet owing to the exchange fluctuations, concerning which tlie Equlisation Fund won It! take appropriate measures.