FALL OF THE FRANC

Dominion, Volume 18, Issue 95, 17 January 1924, Page 7

FALL OF THE FRANC

BLAME LAID AT BRITAIN’S DOOR AN EX-MINISTER’S CHARGES By Telegraph—Press Association. OOPYRIGHT. London, January 15. “The Morning Post’s” Paris correspondent says that M. Klotz, exMinister of Finance, has just published a book,', “From War to Peace,” in which he charges the British Government with having launched an assault upon the franc, which, by degrees,, brought it to its present level. M. Klotz points out that immediately after the Armistice the franc maintained its position, because Britain and the United States and some neutrals established credits enabling France to buy without exchange operations, but Britain in January, 1919, refused to continue the system on the ground that she had to resume control of all her financial resources to meet her payments to America. M. Klotz declares that this is untrue. He says that Colonel House, on behalf of the United States, ap. lied to Mr. Lloyd George and Mr. Austen Chamberlain to resume the French credits, promising American support, but Britain was adamant. The franc began io fall immediately thereafter. The correspondent adds that a reply should be issued to M. Klotz. If his assertions go unchallenged, every fall of tho franc will bo attributed to English malevolence. —Aus.-N.Z. Cable Assn. GREAT ANXIETY IN PARIS Paris, January 15. The fall of tho franc has caused the greatest anxiety. The Commercial Exchange lias suspended the publication of official prices of cereals, sugar, and oil ,a step which is taken only in grave emergencies. It is understood that M.. Poincare and his Ministers have considered the matter and decided to prohibit, speculation in future, combined with the publication of one exchange rate for each country daily, coupled with stringent measures against foreigners circulating pessimistic reports on the Stock Exchange.—Sydney “Sun” Cable. STEPS TO IMPROVE SITUATION Paris, January 15. A meeting of Cabinet, presided over by President Millerand, decided to submit to the Chamber Bills to improve the financial situation, balance the Budget, and solvo the exchange crisis by suppressing tax evasion, effecting economics in the public services,'"postponing all further expenditure, and increasing all taxes from Mav 1. The Chamber is to be asked to vote on the Bills immediately and to make their passage a question of confidence. —Aus.-N.Z. Cable Assn. OTHER PROPOSALS (Rec. January 17. 1.25 a.m.) London. January 15. The “Daily Telegraph’s” Paris correspondent says: “Besides, economies and increased taxation, it is proposed again to raise the bank rate and energetically suppress any speculation against the franc and French public funds. The'Finance Minister announces his willingness to suppress, the monopoly of the sale of matches, but would put duty on them. The franc recovered to-day to an average of 94.51 to £1. — Aus.-N.Z. Cable Assn. CONFIDENCE IN GOVERNMENT (Rec. January 17, 1.25 a.m.) London, January 15. Reuter’s Paris correspondent says that a section of the Opposition having demanded an immediate discussion of the financial situation, the Government insisted on postponement of the debate to January 17, making it a matter of confidence. The Chamber voted 388 to 1.89 in favour of the Government. — Reuter. RECOVERY IN NEW YORK (Rec. January 16, 8.20 p.m.) New York, January 15. Sterling reached 4.25 dollars to £l. representing a recovery of 2} cents from yesterday’s rate. The franc began a brave, but unsteady rally, nevertheless closing at 4.2 cents., showing a gain of one-tenth of a cent. The news from Paris is deemed to he the cause inducing this recovery, in view of the French Cabinet’s reported approval of a 20 per cent, increase in taxes and the adoption of a. programme of retrenchment, including tho adjournment of pensions and bonuses, ns well as the most strict economv in public services. Bankers are gratified by the evidence of a constructive programme being brought about .in France, the result of which is to improve the market. —Aus.-N.Z. Cable Assn.