FRENZIED FINANCE.

Timaru Herald, Volume XCVIII, Issue 18084, 5 June 1923, Page 7

FRENZIED FINANCE.

Greek Situation. DRACHMAS AMD POUNDS. BY CABLE—PRESS ASSN. —COPYRIGHT (Received 11 p.m., June 4.) Athens, June 3. The exchange is now 110 drachmas to the £l. This lias caused the ruin of many banks which incurred enormous losses, as they had converted nearly all their fluids into foreign currencies. The Government, came to the rescue by issuing 300,000,000 drachmas notes, which afforded only temporary relief. - Angry, threatening crowds besieged several banks, which remained open all day Sunday, paying out what' they could, having received a loan of 250,000,000 drachmas from the National Bank, whose position is quite sound, not having converted its funds. Ten of the richest bankers became penniless. Many financial kings lost their all in the wild speculations. Several were arrested. Among them is M. Afendnlis Paindos (Associate Director of the Bank of Commerce), who borrowed 6,000,000 drachmas from it and lost every drachma in speculation. Industrial panics also arose. Numerous employers suddenly realising that they were paying workmen salaries which had risen to be small fortunes caused a crisis in the tobacco trade, which does most of its, business with England. Greek importers of English merchandise who had been paying in drachmas found the drachmas improved so greatly in value that they were faced with bills four times as mucli as tbe merchandise was worth. They refused to pay and re-shipped the cargoes to England.— A. and N.Z. Cable.