SWITZERLAND FACES RUIN

Poverty Bay Herald, Volume LIX, Issue 17954, 5 December 1932, Page 9

SWITZERLAND FACES RUIN

HIGH VALUE OF FRANC TRADE AT A LOW LEVEL GENEVA, October 26. Trade in Switzerland has reached a disastrously low level. A heavy fall in the demand abroad and at home for Swiss products has caused a rapid decline in production. A leading banker stated to-day that Switzerland might be compelled sooner than people imagined to follow the example of Britain and the Scandinavian countries, by going off the gold standard. * While the country, he added, was keeping out everybody clse’s goods, it was unable to sell its own products, because the Swis,s franc stood so high, in exchange. The effect may bo gauged from the following circumstances:— The watch industry it at a standstill, and the Government lias bad to come to its assistance financially. Hotels being almost ruined, the Government lias felt bound to subsidise the industry with 3,000,0C0 francs (about £170,000). The Federal Railways report a deficit of 27,826.076 francs (about £1,590,000) between January and September of this yefir.

Consequently, depression is growing rapidly, and apprehension is felt in regard to the outlook for the winter. The decline in exports during the third quarter of the year was 42 per cent., compared with the corresponding period of 1931. Imports have diminished in value by 23 per cent. , . Such a rate of decline in trade, it is generally recognised, cannot continue without bringing economic ruin in its train.