GIPE-PUNE-OIIOI2 - DSpace@GIPE

AND THE BANQUE DE FRANCE 61
thereby authorized to buy "devises" (gold-covered or
gilt-edged securities, bills, foreign currencies, etc.) and
gold bullion in the exchange market. The year 1927
witnessed, as. a consequence of the Banque's active
operations in this field, the "repatriation of French capital
exported in previous years." Corresponding to. the increase
in the amount of devises and gold the Banque was
also authorized to increase its note-circulation by the
amount purchased so that the maximum circulation fixed
by the law of Dec. 4, 1925, viz., 58,500 millions, could
be automatically increased to the same amount. It was
also possible to recover the French gold deposited with
the Bank of England. 1927 thus marked a decisive stage
in the financial and monetary restoration of France.
In 1928 "a new franc was created," says the
Compte rendu (Paris 1929) of the Banque de France .
•• After 14 years of forced currency the franc became
again a genuine money (une monnaie veritable) no less
solidly pledged for than the strongest monies of
the world."
The law of June 25. 1928. established gold monometallism
and stabilized the franc at the rate prevalent
for the previous eighteen months. It abolished the forced
currency of the notes as legaliz:ed by the law of August 5.
Compte rendu 0/ the Banque de France (Paris 1932) for the latest figures
(in millions):
Year
1931l
1931
Notes
76,155
83,546
Gold Cash
53.563
68.481
The proportion of gold cash to notes and current accounts was 53.03
per cent in 1930 and 60.57 pe:r cent in 1931.