FRENCH FINANCE

Dominion, Volume 19, Issue 217, 9 June 1926, Page 9

FRENCH FINANCE

GOVERNMENT’S DRASTIC PROPOSALS TO MEET RENEWED SLUMP IN FRANC RATIONING AKIN TO THAT IN WARTIME By Telegraph.—Pr.iss Association, copyright. Paris, June 7. The renewed slump in the franc is likely to lead to something like wartime rationing in France, according to the newspapers’ interpretation of the Government’s decision to restrict imports in order to improve France’s balance of payment. “Le Journal” says that the bakers will be ordered to close their shops once a week and the butchers twice a. week. Bread cards may even be instituted, while means will be devised to prevent the speculative purchase of crops in France by countries with a high rate of exchange. The “Matin” says that the plan to restrict' consumption will probably affect wheat, flour, anthracite coal', petrol, and sugar, and certain public works may be suspended. The statement that the Government contemplates using the gold reserve of the Banque de France to support the franc was promptly officially denied, but the newspapers declare that it is hoped to negotiate a loan with American banks, even if the gold reserve of the Banque de France is not employed as security, which was at first considered—Reuter.