Value Of The Pacific Franc

Monsieur r. gervolino, New Caledonian Deputy in Paris, in a comment, published in a French colonial journal, says that the devaluation of the pound should be of benefit to the French Pacific; but that it is regrettable that the Administration has partially destroyed the good that might result by hastily devaluing the Pacific franc—a measure which was not justified because the economy of French Pacific Territories is in a healthy condition.

It is an error, M. Gervolino points out, to expect that devaluation will benefit the sale of Pacific produce in France for, with the exception of nickel, such pro ducts are sold at world prices, paid for on a dollar basis. For nickel as well as other exports the least fluctuation is passed on in the form of increased salaries and net production costs. It is the working classes who really suffer from any inflationary tendency; while loss of confidence in the currency in the eyes of the population upsets economic equilibrium. These consequences seem to have been ignored by the French Govern ment, M. Gervolino adds. He thinks, however, that it is not too late to correct the error by restoring the value of the Pacific franc.