WORLD OF FINANCE.

Waimate Daily Advertiser, Volume XXIV, 25 June 1928, Page 6

WORLD OF FINANCE.

STABILISATION OF THE FRANC.

(Per Press Association —Copyright)

PARIS, June 23.

The Council of Ministers approved of M. Poincare’s measure to stabilise the franc, which will be tabled at a special meeting of the Chamber of Deputies, preparatory to to-morrow’s debate. The Bill contains thirteen Articles. The all-important figure of the franc’s weight in gold has not yet been included.

The Bill has abolished the forced currency established on August sth, 1914. The Bank of France must assure convertibility of its notes into gold, ■with certain limitations, and maintain bullion, coin and gold reserve equal to 35 per cent, of the notes in circulation.

The Bill authorises the minting of 100-franc gold pieces. The Radical Socialist Party has decided to vote for the Franc Stabilisation Bill, the passage of which is thus assured.

[The money markets of the world will open this morning to find the stabilisation of the' franc an accomplished fact. The procedure will be as follows:—M. Poincare, on Saturday afternoon, would disclose the figure to Cabinet and will read the new Convention with the Bank of France and the text’of the necessary legislative measure, after which the Chamber will receive the proposals, which will be referred to the Finance Commission for a report. The debate in the Chamber was to begin at 9 o’clock in the evening, after the closing of the New York Stock Exchange at midday (American time).

An all-night sitting was predicted, and Parliament, if necessary, would sit on Sunday, as it is essential to the success of the- plan that full details should appear in the official journal on Monday morning before the Stock Exchanges of the world reopen, and thus prevent speculation involving colossal sums. The Paris correspondent of the “Morning Post” forecasted that the new franc rate is likely to be 124.48 to the £, which means that 153 coins may be manufactured from a kilo of gold.]