FALL TOGETHER.

Grey River Argus, 17 June 1926, Page 5

FALL TOGETHER.

FRANC AND CABINET. Fresh French Crisis. LONDON, June 15. There was a slump in francs when the Exchange market opened to-day, tlie quotation reaching tlie new low record of 179.25, compared with yesterday’s closing rate 173.25. Belgian francs were down to 175.32 to-day, after closing 168.68 last evening. PARIS, June 15. The Finance Minister (M. Peret) has resigned. The resignation followed a sudden drop in tlie franc. The Government has resigned. This move came as an entire surprise, inasmuch as earlier in the day, M. Briand in the Chamber, opposed the demand for an immediate debate on the reasons for M. Peret’s resignation, and on the financial situation, but promised an opportunity for a debate on Thursday next. He hinted that he would resign on the spot if the delay were refused. Tlie Chamber thereupon by 309 votes to 195 fell in with the desire. The Chamber meanwhile adjourned.

Subsequently Cabinet met and decided that as it was not possible to perform the usual re-shuffling necessitated by M. Perot’s withdrawal, the only thing left to do was for the Ministry collectively to resign.

A communique stated M. Peret explained that in face of the rise of foreign currencies, and the absence of certain essential aid upon which the Government had a right to count, this had not permitted him effectively to fulfil his entire duty. It seemed to him to he necessary to render possible a parliamentary political formation corresponding to the wishes of public opinion, which demands an effort to secure concord in the face of common danger. BANK OF FRANCE SCARED PARIS, June 15. Briand’s cryptic allusion to a lack of certain essential support on which the Government was entitled to count, which M. Briand advanced as the reason for the cabinet's resignation, is assumed to refer to the gold reserve of tlie Bank of Prance, which M. Peret (Finance Mini/ter) vainly endeavoured to obtain as a pledge against foreign credits. BEATEN BY THE FRANC. BRIAND TO HAVE TENTH “GO.” PARIS, June 15. M. Briand’s ninth Government was beaten by the franc, which fell to 186 to £1 on the news of the resignation, but recovered to 1771-. President Doumergue immediately called on the Premier to form a new' Government.

It is assumed in some quarters that M. Briand persuaded his colleagues to resign in a body in order to have a free hand to select new Ministers. M. Poincare, M. Harriot, M. Caillaux and M. Tardiu are mentioned as possibles. M. Briand, in a statement to journalists, said some demanded a Ministry of National Union, and others a man of energy and decision. The former had been tried in Belgium, where nevertheless there had been a heavy fall of the franc, while Italy possessed a man of energy, and yet the lira had not been maintained any better than the franc.