Free French

Finance

Operation of Central Bank

From Our Own Correspondent

Noumea, Aug. 14.

A COMMUNIQUE issued by the Free French Administration in Noumea explained the purpose of the Fi;ee French Caisse Centrale or (Central Treasury), and the reason why New Cale donian funds have been transferred to London.

The communique points out that a cer tain uneasiness had been shown regarding the role the Caisse Centrale, created by General de Gaulle in December, 1941, had

been called upon to play. The communi que continues:— “In particular, allusion has been made to a deposit made to this Caisse of 1,300,000 dollars from the New Caledonian Office des Changes. It has been alleged even that these dollars have been lost to the Colony since they would no longer be made available to importers.

“This allegation is absolutely mislead ing. The role of the Caisse Centrale is notably to receive on deposit funds of which the local colonial treasuries of colonies rallied to Free France do not stand in immediate need. These funds, therefore, form a reserve susceptible of giving free access for imports into the colonies concerned. It is an organisation for mutual help, conforming with that carried on through the intermediary of the Bank of France prior to the Franco- German armistice.

“But the funds so deposited are not lost to the colony making the deposit, for in case of need that colony may ask that

they be placed at its disposal. This system has already been functioning in regard to New Caledonia, since the Cale donian Office des Changes, which through the Bank of Indo-China has transferred to the Caisse Centrale the above 1,300,000 dollars (equivalent to 57,000,000 francs) has since withdrawn, for import needs, various sums to the value of 27,000,000 francs.

“Uneasiness has also been shown re garding the eventual issue in New Cale donia of notes issued by the Caisse Cen trale (the so-called Free Franc). In formation on this subject will be issued at a later date.”