GREECE RAISES LOAN

New Zealand Times, Volume LIII, Issue 12354, 26 January 1926, Page 7

GREECE RAISES LOAN

ALL BANKNOTES TO BE CUT SALUTARY LESSON TO HOARDERS ' A LIGHTNING DECREE By Telegraph.—Press Assn.—Copyright Reuter’s Telegram. ATHENS, January 24. The Greeks woke up_ this morning to learn that unwittingly 'they had all become creditors of this Government, by virtue of a decree .issiimf'last night ordering a forced loan to'be'carried out by reducing by 25 per cettt:"tl-a nominal value of banknotes M'Vjti-culation, except notes of 25 drachmas and under, and money deposited in the banks. The banknotes will he .cut and the detached portions eventually will be 'exchanged for scrip in a loan of 12,500 million drachmas at 6 per cent. There will also he annual drawings with prizes of 10,000,000 drachmas. The Government hopes thus to teach a salutary Jesson to those' who have hoarded money, thus helping Eo cause the present shortage of paper currency. ' _ The decree was accompanied hy a circular explaining that the''object of the loan was to clear up the. financial situation. The proceeds wouldbe utilised for the redemption of the floating debt. The Prime Minister. General! Pangalos, in an interview, declared that the loan would avert the necessity of re-, course to iniiation, and enable the people to save, thereby increasing their purchasing power and contributing to restoring national finances.