The Waterbury Democrat., 1936-09-26

| the final major facter in permitting the government move. Increase Gold Reserves
 The devaluation will increase the governments gold reserves by 13,- GOO, 100000 to 175Oo,OOO00O francs. The new gold value of the franc will be between 49 and 43 milligrams of gold of O.900 finenesS. The present value is 65.05 milligrams. The franc will be placed at about 100 to IA francs to sterling and the. dollar will be worth about 20 to 2111 francs compared with 15.19 francs today with the franc around cents each compared with 6.58A cents. All Markets Closed All markets in the nation have been closed until after parliament debate ends, probably Tuesday night. That coupled with the moratorium on commercial debts payable in gold has made it appear that France is enbarking on 8 period of man. aged currency and virtual gold embargo similar to that now in eff feet in the United States. The cab met also moved to establish 8 10,- 900 ,000, ,0O0 equalization fund to use, as is the one in the United States, to maintain the chosen value for the new franc.
 Can Provide Fund FYSI,A an,,a 1i1o fiavN fund xsyf1I hA yara- vided easily from the governments profit by revaluation which, with out reducing the present percent age of gold coverage, provides the government with at least 13,000, ,000,- 900 francs cash at sorely needed time.
 The government will have no diff1- culty in putting the measures through parliament for it is not only possesses substantial ma jority but can count on the support of the rightwing, notably Paul Rey- maud, a champion of devaluation who recently made hurried mys- terious trip to Washington.
 Six Measures
 The government announced these six measures would be taken to diminish any hardships that might develop from devaluation:
 1-Cessation of Bank of France gold sales.
 2Requisition of gold with com- pensation at the present rate.
 3-Moves to tighten effects of de- valuation on small bondholders, pensioners and war veterans.
 4Readjustment of salaries cou- pied with measures to prevent un- justified increases in living prices.
 Slower interest rates on mort gages and municipal loans.
 6IAccording credits of 1,0O0,- 100000 francs at per cent for municipalities; 500,000,0OO francs for maritime loans and 500,000, 900 for mortgages.
 World Adjustment
 The agreement apparently clears the way for 8 general worldwide currency adjustment which is ex- pected to revive worl dtrade. Most nations automatically will follow the agreement of the three great financial powers. The sterling bloc necessarily will follow England, gold bloc nations will follow France while those countries with currency begged to the dollar will follow the United States.
 One of the few nations in a soli- tary position is Germany which re- portedly is willing to join the CO., operative movement provided she is granted necessary economic conces- SionS.
 Auriol also revealed that the tariff would be used to keep prices where they should be. Instead of using the tariff to lift prices, France is plan ming to let down the bars to permit foreign competition to keep French producers in line if they try to take advantage of the monetary change and raise prices above the normal increases.
 Banks today refused by order oi the ministry of finance, to convert francs into foreign currencies. Am- erican banks continued to take travellers checks at the old rate, promising adjustment next week when the new rate is fixed.
 Foreign Exchanges
 London, Sept. 26.-CUP) .-FOreirn