Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-06-24
FRANC STABILIZED
AT G.52 TO DOLLAR
E;nancc Committee Approves
Measure to Put Currency
On Gold Basis.

4
PARIS. June 23-Stabilization of
the franc on a gold basis at a rate
equal to 500 cents in American money
! was undertaken today by the French
government A bill to this effect intro
duced in the Chamber of Deputies by
| Premier Poincare was approved this
evening by tbs finance committee of
that body. The vote was 50. against
and s ahssslning from the ballot.
The Chamber and the Senate will
both assemble Tomorrow to vote on the
bill. the Chamber converting at 8 am.
Every prophecy was that the measure
would pass.
Bank notes of S, 10 and 90 francs
denomination will be withdrawn from
circulation before December 81. 1892,
and will be replaced by silver coins of
5 and 10 francs. The mint is given
authority Immediately to coin 100 franc
gold pieces, 900 fine.
The entire gold and silver French
curr cncy, coined previous to the pro-
mu,gation of the present law. ceases to
BE- legal tender between individuals and
must BE- turned i'll, to the Bank of
France, where reva'oriZed credit will b.
given the bearers at the new ratio.
Eedecmab!c in Gold.
~he sterilization bill provides that
the Bsnk of France redeem its bank
notes lin gold to bearers at sight upon
demand
Reinburssmcnts for bank notes in
sold can only be transacted at the
main Office in Paris.
The Bank of France must maintain
N its vaults reserves of geld currency
or bars equaling 35 per cent Of the
entire paper circulation.
All laws prohibiting the export of
sold ana silver currencies or bars are
Cancelled by the bill and gold and
silver viii be free and may be taken in
and ous of the frontiers.
May Issue Bank Notes.
The law fixing the limit of paper
pea.ed and the Bank of France is
authorized to issue notes I'd limitless
amount provided they are covered by
IS per cent gold reserve.
It was Q o'clock at night when the
premier appeared before the committee
and gave a concise explanation OF the
bill. A few minutes later several MEM
bers of the committee circulated among
the hundreds, Of newspapermen awaiting
In the Hobbies and the word was passed
around that the rate would be 1852 to
the dollar and l24.2l frances to the
pound sterling.
The individual franc. therefore, viii
be worth 393 cents in American money.
In terms of metal 1t will be 65f2
milIigrams of gold, 900 fine.
THE aoy,ayniftao RYnarfaH tn de-
vote a good portion Of the night TO
consideration of the various provisions
of the bill, particularly those having
TO do with redemption OF paper money
and old coinage.
Same as New York Rate.
The sterilization rate differs only
slightly from unofficial trading on the
Paris Bourse today. 1t corresponds
exactly with the last New York quo
tation received here. On the Bourse
sterling was transacted at 124.2o ana
the dollar at 25.4T. :.
The new coinage, which the Bank of
France win have struck in order TO be
ready to nay gold to holders OF paper,
VIII be worth Just about one-flfth OF
the coins that we're in circulation before
the World War. Consequently. the
gold coins viii be times smaller than
the old The principal coin VIII be
the 100 franc piece. of about the same
size as the old Louis" or 20-franc
piece that was in current circulation
until July 1914.
Economically, the effect OF the stapla-
zation will be far-reaching, but the
man In the street viii have no more
cold to Jingle In his pockets than before:
THE French Republi's entire stock OF
cold will remain for the present In
big. gold bars held in the vaults Of
the Bank of France for use IN ADJUST
ing international balances.
French butchers. bakers and taxicao
drivers win transact their affairs on
Monday with the same old paper francs.
They win read the heavy declarations
of government experts, but find that the
value of their notes has not varied
a Genuine.