Pacific Franc
pp. 19-20 · Read in the full issue
Devaluation Causes Irritation In French Colonies
rpHERE has been much perturbation in L French-Pacific commercial and financial circles sine the £ Stg. was devalued in mid-September.
Prance was not consulted by Britain before the drastic step was taken; and, as the franc is an important factor in Western European economy, and closely linked with Sterling, France was acutely embarrassed, and the French Government collapsed.
Before Sterling was de-valued, the Paci fic franc was quoted at 159 to the Aus tralian £. Probably, if the Australian £ had not also been de-valued. the Pacific franc would not have altered; but when the Australian £ followed Sterling to the new level, the French in New Caledonia and French Oceania did not know what to do.
Finally, they decided to follow the £ only half-way. At the end of November, they were quoting the Pacific franc at 141.75 to the Australian £, as compared with 159 (equal to 70 francs to the US dollar). This represented a de valuation of rather more than 12i per cent., whereas the British and Australian £, in relation to the Dollar, had gone down nearly 30 per cent.
This meant that Australian exporters, in relation to the markets of New Cale donia and Tahiti, were given a sharp advantage over French exporters, French merchants generally are finding the situa tion difficult. The French authorities are trying to keep all possible French trade in French channels; but the natural ten dency is to buy in the cheapest market— Australia.
The New Caledonian General Council is supporting a vigorous protest by the Noumea Chamber of Commerce against the devaluation of the Pacific franc. The Governor-General has been asked to inform the French Government of the protest and of the alarm of the local population at this blow to their economic welfare. A serious view is taken of the interruption of French trade with the New Hebrides. French trade there, it is alleged, has been paralysed in favour of the British as a result of devaluation.
The other side of the picture is seen already in the nickel and chrome industry of New Caledonia. As a result of the new rates a large increase in exports of nickel matte and chrome ore is expected in 1950.
New Caledonia, in 1950, is increasing postages on ordinary letters by 50 per cent, (from 2 to 3 francs—one franc is
worth about one and two-thirds Austra lian pennies) and telegraphic charges by 300 per cent.
In November, New Caledonia held 1,100,000 US dollars, £225,000 Sterling, and £280,000 Australian —described as “a favourable situation.”
Owing to the higher cost of Australian flour, the price of bread in Noumea has gone from 11.20 to 11.65 francs per loaf.
Mr. Bill Murrain, American circum navigator, paid a visit to Sydney in November. He arrived in Port Moresby at the end of October in his stainless steel 30-ft. yacht, Seven Seas 11, after spending over two years in a leisurely crossing of the Pacific, and visiting many Territories.
He left his interesting craft in Port Moresby, and flew South for a brief spell of city life.
Mr. Harry Edmunds has been promoted to the post of Assistant Postmaster- General, Fiji. He joined the Posts and Telegraphs Department in 1921 as a telephone operator. He later became a postal clerk and on various occasions has acted as Postmaster at Levuka, Lautoka and Suva. He was appointed Assistant Accountant in June. 1946, and Accoun tant in July. 1948.