FRANCE’S FINANCES

Evening Star, Issue 22194, 23 November 1935, Page 27

FRANCE’S FINANCES

RAISING OF BANK RATE INDICATION OF CRISIS Press Association —By Telegraph—Copyright LONDON, November 21. The raising of the French bank rate for the second time in eight days is regarded as symptomatic ot crisis conditions. The Bank of France’s losses for thd week ended November lo totalled £12,445,000. It is admitted that the drain on gold stocks has been accentuated since then, which will mean a total loss of gold during the past four weeks of at least £36,000,000. There is a possibility, therefore, that the bank rate may be taken to 6 per cent. The London foreign exchange market saw a sudden wilcl scramble to cover sterling requirements by operators who had been holding back in the hope that the franc would recover. Sterling appreciated in all centres. Dutch guilders are particularly weak. The ‘ Manchester Guardian's ’ Paris correspondent, asserting that an agreement has virtually been reached between the Chamber’s Finance Committee and the Government concerning M. Laval’s Budget policy, expresses the opinion that the flight of the franc is not so much due to the political situation as to the growing conviction of the public that devaluation is now a matter of months.