RECOVERY OF FRANC

Evening Post, Volume 65, Issue 65, 17 March 1924, Page 7

RECOVERY OF FRANC

EXCEEDS EXPECTATIONS.

{Received 17th March, 8 a.m.) LONDON, 15th March. The dominant factor of the Stock Exchange lias been the course of French exchange, its fluctuations* having disturbing effects on speculative markets, causing some sharp movements of prices and checking business generally, Tliero was considerable uneasiness when the {ranc went to 120, but no pressure to sell securities was manifest, and, when tho reaction commenced, the stock markets quickly recovered composure. The continued improvement in. exchange had a favourable effect on tho lone of tile market, but business remains quiet, operators maintaining a cautious attitude in view of tho disturbed labour outlook, and particularly tho growing danger of a miners' strike. The extraordinary spectacular recovery of thf> franc has surprised everybody, for, though financiers generally had optimistic ideas regarding tho result of the. French Government's remedial measures, such rapid reaction was not anticipated. M. Poincare's success in the Senate has given a furlhar stimulus to the recovery, and exchange to-day is under 90. The rout of the "bears" seems to be complete. _My. pierponfc Morgan, interviewed in Paris, said that the movement once begun cannot bo stopped. The "Paris Journal" states Vat francs bought since Monday by the French banks, which cannot be delivered, amount to ECO millions.