EXPLOITING BRITONS

Waikato Times, Volume 108, Issue 18169, 6 November 1930, Page 7

EXPLOITING BRITONS

FRENCH CUPIDITY. tWAR LOAN BONDHOLDERS FLEECED REPRESENTATIONS FUTILE. ■ ______ "V.. United Press Assn.—Elec. Tel. Copyright (Received Nov. 6, 12.45 p.m.) LONDON, Nov. 5. Answering a question in the House of Commons in regard to British representations to the French Government representing the position of the British holders of 1919 French War Bonds, Mr Philip Snowden (Chancellor of the Exchequer), said he regretted that the'reply received from the French Government was unfavourable and expressed inability to grant any equitable compensation to British holders. The matter was under consideration by the treasury.

At the end of 1915 the Bank of England, with the consent and approval! of his Majesty’s Government, was authorised by the Frenoh Government to receive applications towards a London issue of 5 per cent. (French National Defence Loan. When British investors came forward with their monetary aid to the French Republic and "subscribed to this loan it took about 27J French francs to purchase £l. On this basis and at a price of 88 per cent, the loan was floated. All went well until the French franc began to deteriorate in terms of British pounds. Then the value of this franc loan began to move with the. exchange. This movement culminated in October 1928, when the French franc was officially revalued at 124.21 to the £l. This meant a definite and permanent loss of 75 per cent, of the original subscribers’ capital and income. The French Government has decided to pay the loan hack on the basis of the deflated franc, which means a loss of many millions of pounds to the British bondholders. The actioni of the French Government, while regarded as legal, is looked upon in Britain as de* cidedly unmoral.