FRENCH RECONSTRUCTION.

Auckland Star, Volume LV, Issue 77, 31 March 1924, Page 4

FRENCH RECONSTRUCTION.

We mentioned the other day in discussing the confusion In French politics, that M. Poincare had showed signs of wishing to lead the parties of "the Left." It is stated to-day that in reforming his Cabinet he has included three men who opposed him in the recent financial debates, and one conclusion drawn is that though he is unwilling to modify his foreign policy materially, he wishes to cany it out, as far as possible, "with the support of those parties which to English eyes, might be considered to be the Opposition. All this is another illustration of the flexibleness of party lines in French politics. It should be noted that M. Poincare is still Foreign Minister, but that he has a new Minister of Finance. Events seem to be moving in his favour, for the franc continues to firm and is now below 80. This is an astonishing recovery, but its permanency will depend upon the financial courage of the French Government. If France is not adequately taxed, and if the Government goes on borrowing to balance the Budget, the franc will fall again. Probably few people realise the magnitude of the financial problem facing the country. The national debt was £5,898,000,000 on January 1, 1919— just after the end of the war. By March 31, 1922, it was £12,697,000,000! This was two years ago, since when large additions must have been made to it, yet the debt of Britain, which is a wealthier country, was last year, only £7,742,000,000.