FALLING FRANC

New Zealand Herald, Volume LXXIV, Issue 22845, 28 September 1937, Page 10

FALLING FRANC

BRITAIN WORRIED APPEAL TO AMERICA COUNTER STEPS UHGED POSITION OF THE DOLLAR LONDON. Sept. 10 The United States is about to be requested again to save the franc. Sir Frederick Phillips, Under- j Secretary of the British Treasury, who had been on holiday in Canada, has gone to Washington. He will discuss with the United States Secretary of the Treasury, Mr. Henry Morgenthau, joint measures, under the Three Power monetary agreement of October, 1936, to Btem the franc's deoline. Britain is extremely worried and displeased over tho depreciation of the franc, and wants tho United States to join her in putting pressure on France to stem the decline. Britain wants France to resume control of the franc through the use of her equalisation fund, should tho franc fall to 150 to the pound. Then Britain and the United States would co-operate to prevent the franc from falling lower. Britain is particularly displeased because the depreciation of the franc is increasing tho value of the dollar in relation to sterling. Bulk funds from Paris are taking refuge in tho United States. This causes a keen demand for tho dollar in London. The British exchange equalisation fund is forced to sell dollars heavily to avert a dollar advance against sterling.