SECRET INFLATION

New Zealand Times, Volume LII, Issue 12323, 18 December 1925, Page 11

SECRET INFLATION

PORTUGUESE BANK CURRENCY (Sydney “Sun” Cable.) / LONDON, December 10. ' The “Daily Mail” discloses surprising developments in the Bank of Angola case. One of the directors, who has been arrested, asserts that there were no false nbtes, but that there was an understanding with M. Oannacho, governor of the Bank of Portugal, who has now resigned, that the paper currency should he inflated with a view to' a financial crisis in the Portuguese colonies.

A bank was established early in the year under the title of Angola and Metfopole Bank. Two directors visited London, Where they printed immense numbers of notes in imitation of the Portuguese equivalent of £5. They carried-these to Portugal in four larjre trunks, which the Customs officials did not Bearch. inasmuch ns the owners were travelling under Talse diplomatic passports, ensuring immunit'. The directors widely distributed these notes in exchange for realisable articles, mainly precious stones, jewellery, and shares. The police arrested several officials, and seized the Areola Bank’s safes, containing 50,000 valueless notes and £20,000 worth of genuine ones.