Post by alxeu on Oct 1, 2022 23:13:34 GMT -5
SILVER PURCHASE ACT RATIFIED
Decallien 17th, 1931
Following business leaders' warnings of silver price drops amidst massive silver sales from Franerre and Ashinara, the Sejm today, with assent from the Cabinet, has passed and ratified the Silver Purchase Act. The Act declares a national moratorium of all foreign silver purchases by all institutions save those given special permissions by the government, with stringent oversight. In practice, barring exceptions for specific industries, this would limit silver purchasing to a handful of banks across Lusatia that control the printing and distribution of the Złoty.
As part of an official press release following the act's ratification, Prime Minister Feliks Komorowski had the following to say, "This act will secure the domestic stability of our nation's currency, guaranteeing that the silver supply in our nation will be controlled and strictly distributed by the government and trusted financial bodies, promising economic security for our nation." The Prime Minister continued by urging Lusatia's economic partners to implement similar policies, even suggesting that Lusatia would be happy to convert foreign silver reserves for Złoty or even limited amounts of Jewels, for the purpose of maintaining the feasibility of silver as a backing for international currencies. Continuing, he warned that a similar problem could afflict gold, and that if the necessity arose, Lusatia would reciprocate any actions taken by nations with gold-backed currencies to ensure global economic security.
As for Franerre and Ashinara, a later clarification offered by Economic Minister Mikołaj Zachariasiewicz assured that their silver would be accepted by Lusatian financial institutions, but indicated that fewer Złoty per ton of silver would be offered so long as Toulian silver exports continued at the current extremely high rate. Zachariasiewicz suggested those nations could perhaps rely more on loans from financial institutions in Lusatia, Ulster-Gaelia, and other nations in order to avoid depressing the value of their exports.
Decallien 17th, 1931
Following business leaders' warnings of silver price drops amidst massive silver sales from Franerre and Ashinara, the Sejm today, with assent from the Cabinet, has passed and ratified the Silver Purchase Act. The Act declares a national moratorium of all foreign silver purchases by all institutions save those given special permissions by the government, with stringent oversight. In practice, barring exceptions for specific industries, this would limit silver purchasing to a handful of banks across Lusatia that control the printing and distribution of the Złoty.
As part of an official press release following the act's ratification, Prime Minister Feliks Komorowski had the following to say, "This act will secure the domestic stability of our nation's currency, guaranteeing that the silver supply in our nation will be controlled and strictly distributed by the government and trusted financial bodies, promising economic security for our nation." The Prime Minister continued by urging Lusatia's economic partners to implement similar policies, even suggesting that Lusatia would be happy to convert foreign silver reserves for Złoty or even limited amounts of Jewels, for the purpose of maintaining the feasibility of silver as a backing for international currencies. Continuing, he warned that a similar problem could afflict gold, and that if the necessity arose, Lusatia would reciprocate any actions taken by nations with gold-backed currencies to ensure global economic security.
As for Franerre and Ashinara, a later clarification offered by Economic Minister Mikołaj Zachariasiewicz assured that their silver would be accepted by Lusatian financial institutions, but indicated that fewer Złoty per ton of silver would be offered so long as Toulian silver exports continued at the current extremely high rate. Zachariasiewicz suggested those nations could perhaps rely more on loans from financial institutions in Lusatia, Ulster-Gaelia, and other nations in order to avoid depressing the value of their exports.