FRANC CRISIS

Poverty Bay Herald, Volume LXIV, Issue 19365, 1 July 1937, Page 6

FRANC CRISIS

EFFORTS FOR STABILITY CO-OPERATION DESIRED BRITAIN AND AMERICA TREASURIES IN TOUCH (British Official Wireless.) Rccd. 2 p.m. RUGBY, June 30. Replying in Ihe House of Commons to a question on the French monetary measures, the Chancellor of the Exchequer.; Sir John Simon, said that it was generally recognised that the readjustment of the franc in September of 1936 had not been entirely successful in re-establishing a lasting equilibrium between the economic system of France and those of the United States and Britain such as was the underlying object of the tripartite agreement. "I understand that the measures now contemplated by the French Government, which involve the ‘ removal of the upper and lower gold limits now prescribed for the franc, are addressed to adjusting this situation," he continued. "I have been assured, however, by the French Government that it is not its object to seek any exchange advantage from this adjustment, and that it is anxious to continue in close eoperation with the Governments of the United States and Britain. “This is the all-strong desire of the British Government and we are in close touch with the French Minister of Finance and the Secretary of the United States Treasury with this object in view.” UNPEGGED FROM GOLD FOLLOWING THE POUND FINDING OWN LEVEE (Reed. July 1, 1.15 p.m.) PARIS, June 30. The Bourse wifi reopen to-morrow. A decree replacing the Monetary Act of 1936, which brought the last devaluation of the franc into effect, savs that the gold value of the franc will be fixed later. The relation of the franc to foreign currencies will be regulated by the stabilisation fund until conditions of the convertibility of Bank of France notes into gold are decided. The franc therefore is being unpegged from gold and will follow the pound in finding its own level, and will not be convertible into gold at any fixed level.