PROBLEM IN FRENCII BONDS.
A very constant reader of the Spectator presents me with the following problem, desiring that I should express my views with regard to the course to be adopted. My correspondent is in the position of holding French Credit National Bonds as follows :-
225 fn., 500 1919 5 p.c. • • .. • -• Nominal 112,500 120 „ 500 1920 „
„ 60,000
Fn. .. 172,500
These bonds were bought at various dates from 1918 on, at an exchange of 26, 30, 40, 50, &c., the purchaser always hoping, by further and later purchases, to equalize. As it was a Government security, he says, " I considered these purchases gilt-edged,' and no doubt there will be many thousands of Britishers who thought likewise. Can anything be done to give these bonds an equitable value ? If I sell out to-day I should lose a very large amount. Some time ago, I think it was proposed in the Times to appeal to—or at any rate to approach—the French Government (on behalf of the British subscribers collectively) regarding the loss incurred by British contributors to their loans, owing to the terrible fall in the franc, whether spent in France to-day or converted into ster- ling at prevailing rate of exchange."
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