IMPROVEMENT IN FRANCE

Press, Volume LXXIV, Issue 22592, 23 December 1938, Page 9

IMPROVEMENT IN FRANCE

Financial Recovery Reported

SUPPORT GIVEN TO STERLING

Signs of Renewed Confidence

(UNITED PRESS ASSOCIATION—COPYRIGHT.) (Received December 22, 11.30 p.m) PARIS, December 22. The Minister for Finance (M. Paul Reynaud), defending his financial policy in the Chamber of Deputies, said the recovery measures had increased confidence and caused stocks to rise by £335,000,000. Government Bonds alone had recovered !£ 167,000,000. M. Reynaud said gold was voluntarily returning to France and the franc continued strong. The Exchange Equalisation Fund had even had to support sterling in recent weeks, entirely reversing the previous position.

He added that nobody had effectively challenged his policy, which was resulting in increased employment, higher production, and lower interest rates, and was giving every indication of an industrial revival.

M. Reynaud refuted charges of currency inflation, asserting that he had merely utilised the influx of capital which was voluntarily placed at the Government’s disposal. It was essential for France to know that her position was improving. The general loosening of purse strings indicated renewed confidence.

Government stocks to-day gained from 1J to 23 points. Banking and industrial shares shared in the recovery. ~