SLUMP OF FRANC

Timaru Herald, Volume CXLIV, Issue 21029, 6 May 1938, Page 9

SLUMP OF FRANC

FINANCIAL CRISIS IN FRANCE United Press Association—By Electric Telegraph —Copyright LONDON, May 4. The franc has slumped to its lowest level since 1926 and touched 170 during the day, closing at 169.75. The French Prime Minister (M. Daladier), broadcasting in Paris, said that the franc was being stabilised st a rate rendering it safe from attack with the agreement of London and Washington. Reports that stabilisation was imminent were circulated in the Bourse just before closing. Demoralised trading shares were sharply marked up in frantic buying. M. Daladier emphasised that the nation’s savings henceforth can be invested without fear of further devaluation. On the contrary, the value of the franc may possibly increase. The Government’s action will form part of a vigorous programme to promote production and trade and the execution of a large Public Works programme.

PRIME MINISTER’S BROADCAST TELLING THE NATION THE TRUTH United Press Association—By Electric Telegraph—Copyright (Received May 6, 12.45 a.m.) PARIS, May 5. In a dramatic broadcast throughout the nation, announcing the re-stabilis-ation of the franc, M. Daladier (Prime Minister) in declaring that he wanted truth, said that State economy was as always to tell the country the whole being “drained of its lifeblood.” Appealing for the nation’s confidence, the Prime Minister said that the national defence loan would give all Frenchmen a chance to demonstrate their patriotism “as in the plebiscite.” ■ He added: “The whole truth is that our economy is hard hit, our State Budget is inevitably unbalanced, and the Treasury needs are a drain on the national savings. The lowering of public credit is drying up private credit and menacing our currency. It is not a question of doctrines or experiments, but any measure contributing directly to the salvation of the country.” The franc opened at 178.9 to the £; 35 8 to the dollar, representing an overnight fall of nine and two francs respectively.