GRAVE POSITION IN PORTUGAL.

Dominion, Volume 1, Issue 87, 6 January 1908, Page 9

GRAVE POSITION IN PORTUGAL.

' Lisbon, November !);• ■ • Tho Government, are taking" active,. mei-' sures to nullify tho efforts', of tlioposition and Revolutionary; fbfceS', !\vlio r lia'ye v been arranging for a combined" 'demonstration on January 2 next. It is : known'that several crack regiments stationed in thai provinces, whose fidelity to tho Ci'ownViS beyond question, havo received ordtirs'to hold'tnem-; solves in rcadirioss for any immediate trails-' fer, tho Government desiring to bo in ajpsi;-' ' tion to cope with any outbreak, on : th'Cpart, of the Republicans, this ■ patty having,/do?. clared that they intend 1 to resort tp.yioleiit me'asuros in an effort to overthrow tho.Mpn-, avchy. Spies are being employed 'to "wafch. the movements of tionists, many of whom aro ' army ; officers,, the Government fearing a defection, of troops in tho event of ,'a'"iiia'nifestq. to i)ie army, being issued by the-RbiHibljcaU .Bxeqiitive. .. • '.V'.i-.r A serious feature of the'-sitiiatioa/is'tho' . great commercial depression, .from' .which tli'e whole country is suffering, x qwing to,',thc: : ii!iprovidcnce of the Government in, faifmg,.to keep up tho reserves usually, hbl'd,,-'hi 1- tliG' , banks of London, Paris, ; Srid BerJih." Witli, tho financial crisis existing abrqads and,..tho heavy interest charged, the Government. 3re. experiencing great difficulty..'..'in " jirocuniig'. loans. After considerable'.trquble.ai loau.flf £1,350,000 was effected through.a' Belgian bankers, but at so: high; a rate' of. interest as to preclude tho; poritinuation ,"of finance on theso lines. '". T „ To make matters worse, tlio'.oxchango has,, boon' rising day b.v day..'.The' pound-' sterling, which a week ago'..was ..practically at.', par, has now an exchange, valuo..of ,25.;.p,i^., mium, and this figure is likely, to. -1 be, enhanced. Tho effect of all..this is ..that public, opinion, which, a, year agp,,, looked ..upon, ; Senhor Franco as the saviour of the poun- . try, is now.as much against.'.him as'it. was. previously in his favour.,..',lf ia.,.reported.;i'n, tlio newspapers that it i?.,,thq i ',i.ntqDtioii,,.qf:,. tho Government to increase the paper currency to a considerable-, extent,', riyithont; however, increasing tho corresponding metallic reserves. This will haye'the' effect of'fur-' . ther depreciating moiicy. abroad. '