DISQUIET AT DANZIG

Taranaki Daily News, 5 June 1935, Page 5

DISQUIET AT DANZIG

DEVALUATION OF GULDEN FIFTH OF NOMINAL VALUE NAZI REGIME UNPOPULAR DEMAND FOR PLEBISCITE By Telegraph—Press Assn.—Copyright. Rec. 8.5 p.m. London, June 4. A disquieting situation has developed at Danzig as a result of the devaluation of the gulden on May 26, the banks refusing exchange for other currencies. As a result the gulden has fallen to onefifth of its nominal value and there is a general rush to buy Polish currencies. The Nazi regime at Danzig, which was elected on April 7, is fast losing Support. Its opponents are demanding a plebiscite to clear up the financial situation. The reason for the anti-Nazi agitation is the persistent rumour that Nazis took advantage of private information to buy foreign currency and commodities in anticipation of a slump in the gulden. There was a rush on provision and clothing shops during the week-end by would-be hoarders and prices are rushing up.

Danzig suffered severely in 1923 because of the collapse of the German mark and the disorganisation in Germany. In September, in agreement with Poland, the Free City adopted a new currency with a unit known as the gulden. A new bank of issue was established with a large gold reserve. The bank’s gold reserve on June 30 1934, was‘‘27,ooo,ooo gulden, with foreign assets of 18,000,000 gulden, making a 108 per cent, cover for a note circulation of 41,700,000 gulden..