PARIS GOLD BILL

Poverty Bay Herald, Volume LXIII, Issue 19133, 30 September 1936, Page 5

PARIS GOLD BILL

FRANC DEVALUATION LEGISLATION ADOPTED REACTION m HOLLAND C4UILDER DEPRECIATION (Klec.Tel, Copyright—United Press Assn.) (Reed. Sept. 30, noon.) LONDON, Sept. 29. A message from Paris .states that the Chamber of Deputies adopted by .",50 votes to 221, the Gold Bill embracing the proposals for the devaluation of the franc. The Prime Minister, M. Leon Blum, intervened during the debate to point out that they were discussing a fait accompli. Even if the Chamber threw out the Government, it could .not go back on what had been done. An amendment modifying the "sliding scale of wages adjustment was adopted, by 335 to 199 votes. An Amsterdam message says 'that the Prime Minister of .Holland, Dr. H. Colijn, announced in Parliament "that owing to the confusion of the international money market, the Government did not intend, to fix the gold value of the new guilder, and depreciation could be expected to an extent which could not be foreseen at present-. On the London market gold is quoted at £7 Os 7d. " . . WIDESPREAD EFFECTS REVIVAL OF TRADE - STABLE EXCHANGE (British Official Wireless.) Reed 9.30 a.m. RUGBY, Sept. 28. Following the French Government's decision regarding the franc, "a wide extension of the. currency, realignment for a revival of international trade is indicated and optimistic conclusions are generally drawn. As a result of adjustments made, or generally believed.to be in contempla-' tion, it is argued that n substantial area embracing most of Europe and nearly all of Africa, the whole of North America and of Australia and considerable parts of Asia will enjoy stable exchange relations and be freed gradually from hampering currency restrictions. BRITAIN AND AMERICA CURRENCY PROTECTION STABILISATION FUND WASHINGTON, Sept. 29!. An arrangement co-ordinating the British and American stabilisation funds to protect an .Anglo-American conditional currency agreement with France is, it is understood, being negotiated. Apparently a soothing effect after Saturday's .flurry is resulting from the use of the American stabilisation fund to counteract what then seemed a Russian attack on the pound. The Secretary of the Treasury, Mr. Henry Morgenthau, junior, is believed to have acted independently of Britain and France, when he purchased the Russian State Bank's offering of £1,000,000. Mr. Morgenthau said the plan to tie American, British and French currencies was working as projected. He described the currency arrangement as a "gentlemen's agreement. ** There was no fixed ratio. -Any -currencies involved in the operation would be determined from day to day, almost hour to hour. He emphasised that the American intention to act with the others ensured a smooth currency situation.

Belgium is expected to enter the pact.