| Show BELIEVE HOARD BOARD OF U Ii S GOLD IS USED TO 10 SHAKE DOWN THEIR THER CES By BIRD Special Correspondent Co ent Special to The Thc Standard Standard- Standard Examiner Examiner Copyright Consolidated 1924 by TIle The Th Consoli dated Pross Pro Association PARIS April In 6 f 6 In In the th 1 pres- pres present pre res- res resent ent nt excited state elate tat of ot th the public mind in an this thia Id of ot the lh Atlantic due to the th violent fluctuations In the th paper currency all manner of charges s are aro being b made mad re- re regarding re garding Americas America financial power pow- pow or er r and the tho th uses ues to lo which It has haa haibe been n pUt pui Newspaper Nw paper articles article and editorials editorials als ala printed In every overy very European country during the pa past t week have tremendous laid emphasis on the th dou dous American gold fold surplus and how It could be b wielded to affect the finances ot of f other oth r countries The recent violent fluctuations ra of ot the th French franc trane have hav been cIted as the th principal illustration ot of the extent ot of this power Among this wild talk one on heard beardon on the tn Paris Parl stock alock lock exchange was wasa s sQ Q a report that the tho th lean Ann bank bank- Ing bankIng bank group which recently saved ave the French franc by a a timely ad- ad advance advance vane d-vane vance ol ot dollars had themselves provoked provoke th the panic whIch ren- ren rendered ren rendered dered this thi thiu Intervention noco ary AccordIng to thle thi story atory the these so American bankers had cleaned up about by selling francs at six alx lx cent and bUYing them back later 0 at tour four cents cente c nt Then Thon on the th ev evo of ot the tho th American loan the tho th report went on those on the th inside ln ld again liou bt francs franc at legs lees than han tour four cents cent thy which they are aro ar selling today at about abou cents th winning both ways Those Thos French German and Italian papers which have havo dignified fled fied such stories by crediting them ar are willbe Inquiring which country will be the next victim of ot the the th American Ameri- Ameri can gambling mania are telling their readers reader procedure for tor anybody controlling large larr cash cath Is simple Manipulators Manipulator ors simply sell soli any countries currency short hort to I the dollars dollar extent ot of several everal million dol- dol dol lars lar and this produces produce II a a panic Those Thoe who rho are aro ar long on the cur cur- currency currency cur I rency then begin to sell rapidly Thus that particular currency curr declines at a 11 a dizzy speed ped as aa a the franc did several veral weeks week ago aro After Atter making m a substantial profit the th manipulators manipulator begin berin to buy la Is the depreciated currency at low prices these the o papers say lay When It Is judged that the th maxi maxi- maximum maximum maximum mum has bas ba been collected a large loan to the country In question Is I announced and Its currency rises ra rapidly enabling ena the th manipulators to sell Bell 11 their th lr surplus holdings with another large lar prone Whether or not it Is I true tru that Wall Street rules rule the tho world European countries appear heal heal- hc tant l-tant taut In announcing any financial program D TIlls This may be b dl to the tho state tat of the th public mind as lh the people have suffered so eo o much through fluctuating currency and n rIsing prices that many of them are ready to tp believe anything In New York banking banking- circles IJ the Idea of the tho American gold eold old surplus being being- put to any such aUCh uch uses u as Is I charged in European news news- newspaper paper nw-paper p paper per articles article is s ridiculous There Th was a certain amount amoun of ot American abort hort selling lime during during- the tb recent smash ma h la In the th franc the th lame am GAl 05 there thereas was as German Gennan English lith And Dutch abort bort selling But this thi was an Incident merely It Is I declared The rile franc wet wept down primarily because Germany was waa wa not pay pay- lag Ing payIng paylag reparations and the tb French balancing Th budget was far tar from balancing The French rench government was wa at atthe atthe the end of ot the th rope rop so o tar tir r ea depending on International loans lons to make mak good food th the d deficit This with Ith the th rapid ld Inflation of t paper p p r note notes which rose ro from less than thon in the th third wk week of December to tp over 4 in the th first week of ot March the March th hIghest on record record weakened dl faith In the th franc Is ii i the th Idea Idoa which calm ob- ob on this t thi side 14 of ot the tho th water waft take Uk of ot the tho th matter mattey Naturally there ther was w much accompanying speculation from th the declines and the tho th aho short hort interest was wa very vry much when the th American syndicate loan of was announced But this loan It Jt Is ii said aid 1 would never have hav b been en made mad had not the tho th French Fr authorities adopted the h plan of fiscal Il cal reform Increasing tax 20 per cent and promising retrenchment nt In ex- ex expenditures for reconstruction which gave confidence that the budget bu ct deficit would woold cease 4 I |
