PERTURBATION IN FRANCE.

New Zealand Herald, Volume LXVIII, Issue 20989, 28 September 1931, Page 7

PERTURBATION IN FRANCE.

LOSS IN STERLING HOLDING

LARGE BANK THREATENED. FEAR OF BRITISH TARIFF. By Telegraph- Pre** Association— Copyright. (Received September 27, 7.15 p.m.) PARIS. Sept. 2ti. The fall in value of the pound sterling continues to great anxiety in blame. It means an enormous depreciation in value .of the sterling holdings of the Bank of France and other banks. Meetings between t lie Ministei of Finance, M. Flandin. Treasury officials, and the Governor of the Bank of trance. M. Moret. are believed to be concerned immediately with the rescue of the National Bank of Credit, which recently continuously lost deposits. It is expected that the bank will be absorbed by a group headed by the Credit Lyonnais. Chambers of commerce throughout France are inundating the French Cabinet, pleading for intercession to prevent a tariff in Britain. The Roubaix and Tourcoing textile traders are much perturbed at the fall in sterling, which has automatically placed an impost of 33 per cent, on their output. They point out that hitherto woollen yarns and fabrics formed one-tenth ol; the French exports to Britain. The Banqne Nationale do Credit was founded in 1913 to take over the trench branches ol? the Comptoir d'Escompte de Mulhouse, an institution established in 1048 and since 1871 legally a German company. The bank, which specialised in discount and acceptance business, has developed rapidly and is now ranked as one of the "Big Five" of France. Last year it absorbed the Comptoir de Mulhouse. the institution from which it was an offshoot, and with the consequent issue of shares, the capital of the National Credit Bank, according to the balancesheet at December 31, 1930, is 318,750,000 francs (about £2.570.000), with reserves amounting to 175,970.000 francs (about £1,410,000). Deposits at the balancing date totalled 4,627,772,728 francs (£37.260,000). The bank has many offices in Paris and branches and agencies throughout France. The Credit Lyonnais, though originally a local bank in Lyons, where it was established in 1863, is one of the two largest deposit banks in France. In addition to its network of branches in France, the bank lias an extensive foreign organisation. Its paid-up capital is 408 million francs (£3,285.000) and its reserve fund 800 million francs (£6.440,000). The total of its balance-sheet at .Tanuarv 31 was 15,372.822,721 francs (£123,775,000). LOSS TO FRANCE. SMALLER TOURIST TRAFFIC. RIVIERA BADLY AFFECTED. PARIS, Sept. 25. The present quotation of the pound sterling promises to give an almost knockout blow to France's valuable tourist traffic. The German crisis, which resulted in a tax of £5 being levied on Germans leaving the country for a holiday, has also kept thousands of people from France. The lavishly expensive resorts on the Riviera, to which tens of thousands of British visitors resort in the winter, will be practicallv deserted. Incidentally, fewer wealthy Americans are crossing to Europe. The favourable exchange is a great inducement to the. French to visit England, and the French tourist agencies are already urging people to spend their holidays at home. STOCK MARKETS ACTIVE. BRITISH FUNDS STRONGER. CHECK ON SPECULATION. (Received September 27. 0.15 p.m ) LONDON. Sept. '!''<■ Activity again characterised the Stock Exchange, with a further advance in industrial and mining shares. Heavy sellings and falling prices are roported from the Continental Bourses. The banking house of S. Schoenberger and Company, Berlin and Amsterdam, has closed, owing to losses caused through the depreciation of the pound sterling. British funds weakened further, owing to the relapse of the pound sterling. The committee of the Stock Exchange announced yesterday that from to-day all bargains must be for cash, and not continued from day to day. It is believed that this decision was made in order to check speculation. The rule has already had the desired effect in restricting speculation. Owing to an improvement in sterling, British funds moved up. Foreign Exchange:; showed an improvement all round to the extent of a penny to threepence in the value of the pound sterling. The world-wide confusion following Bri tain's abandonment of the gold standard has eloquently demonstrated how the pound sterling is the key to the worlds business. The German Steel Trust is dosing its mills at VVissen. which has 1000 employees. 90 per cent, of whose output is sold to foreigners ori a sterling basis.