The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-11-19
FRANCE PLANS Curb
ON EXCHANGE DEALS
Steps to Be Taken to Pre-
vent Operations Leading
to Fall OF Franc.
BOURSE LISTS FAULTY
Bank Inspectors to- Watch
Carefully Transactions to
Hinder Speculation.
SEASON AFFECTS DECLINE
Vigilance Due to Charge That
Britain Sold Francs to Pay
United States Interest.

Special Gable to THE NEW YORK HERALD.
Copyright. 1929. bD THE NEW YORK HERALD
New York Herald Bureau. ! I
Paris. Nov. Is, 81
Greater control over exchape
transactions between American hd
French banks in Paris. as wev as
over every deal passing throughthe
official Bourse. is TO be the Fench
Governments first step towari pre-
venting speculative exchange opera
tons such as have been Witnessed
during the last month.
For several days expert OF the
Ministry of Finance anj of the
Bourse have been confeptng as to
the real causes behind tN deprecia-,
ton of the franc. and VILE they are
convinced that it is l3gely due. to
ordinary conditions SUD as the pay
ment of the year end gnmercial obli-
cations. it is evidentthat there has
been speculation aderse to French
interests as well az manipulation of
the Bourse records 70 such an extent
that the daily acreage rates pub
lished did not reprsent the real value
OF the franc.
THE NEW YoREfIERALp correspondent
was informed by a high official of the
Finance Minsty that while the Govern
mont was not fet ready TO Try tie Bel
gian experimet OF having 4 special ex-
change narRt. operating during the
next few mnths will bo watched by
Bourse polio and bank inspectors. and
IL is ikely.as was the case early last
year that everal exchange dealers viii
find Themselves prohibited from continu-
ing in bushess on the French Bourse.
Ipppens Every Year.
"I, is vry easy to attribute the francs
frequent depreciation TO speculation, I"
said thecorre spordent's informant, but
the realty is quite different. Every year
bort November the franc falls, owing
IN par 10 the lack OF confidence over
the successive budse deficits but mainly
becaue il is a period when big business
men yust pay their coal. cotton. nitrates
and ther purchases abroad. The eco.
ront repercussion OF such conditions
Is aeolutely logical and is never likely
10 ury. Nevertheless a peculiar trick.
cry also is applied to Bourse operations
in oreign currcncies which has de-
cidh effect and must be prevented inn
mdiately.
AT present the daily average rate
p,blished Is based on the total of al
crrntious as we'll az high and low
optations. We have cleaned out many
seculators who were operating contrary
q French interests but it is still easy
Or a man to buy say 100000 worth OF
rancs and to pass in a French compu-
atoms slip showing that the deal was
jnly for $4,000. with the result that the
daily average Is inexact and usually u
our disadvantage.
Likewise it is possible for bankers To
pass a verbal order TO buy and sell
without registering the transaction at
Ill, and &c .will be necessary to control
thls By closer contact by Bourse Of
flcials on the floor of the exchange
market"
While not charging that American
bank branches here are attempting 10
drive down the franc by failing to pass
big international deals through their