FRANC COLLAPSES.

Grey River Argus, 21 July 1926, Page 5

FRANC COLLAPSES.

ALL PARIS DISTRACTED. Rush For Foreign Currency. HASTENS THE FALL. POLICE PROTECT BANKS. (Sun Cable.) (Reed. July 20 at 9.10 p.m.) PARIS, July 20. Cordons of Police were stationed round the Bourse, the banks and the exchange offices to-day to restrain the crowds who were threatening to storm the buildings, seeking information regarding the fluctuation of the franc. The fall of the franc feverishly agitated the Bourse. The brokers were besieged and were unable to cope with the orders to sell foreign stocks, leading to the suggestion that business will possibly be suspended to-morrow. (Reuter.) PARIS BOURSE UPSET. PARIS, July 20. The Paris Bourse, guarded by police, witnessed its stormiest day since the declaration of the war. There was a great crowd outside, who received the figures of the franc’s fall with veritable howls of rage and disgust. Men, and women too, with haggard faces, rushed hither and thither, some wringing their hands and uttering forebodings of ruin. As soon as the banks opened this morning, many started selling everything they possessed in the way of French holdings. They had decided to save remnants of their fortunes by Converting them into sterling. The re suit, as may be expected, was that the franc slumped heavily. The English and other foreign banks were crowded early in the forenoon. The fever spread to the cafes, where the slump of the franc was the sole topic, except among those who sat distractedly, drinkless and unheeded, who were ruined or were anticipating ruin. LONDON, July 19. The French franc in London close! at 222 25 PARIS. July 19, The franc’s exchange rate touched 233, and is now 226. DEMONZIE SUCCEEDS CAILLAUX. PARIS, July 19. M. Harriot has formed a Cabinet; M. Demonzie is chosen as Minister of Finance. NEW MINISTRY ANALYSED. A BID FOrTeFT SUPPORT. (Recd. July 20 at 10 p.m.) PARIS, July 20. < M. llerriot is both Premier and Min- ; ister of Foreign Affairs. Al. Painlevc ■ is Minister of War, ami AL Loucheur is J Minister of Commerce. I Compared with M. Briand’s Cabinet. - M. llerriot’s list is a completely new one, and it contains several littleknown personalities, but it betrays the strongest bid for the Cartelist support in the persons of AL Chantemps (Minister of the Interior), AL Renoult (Minister of Marine), M. Bonnet (Minister j of Pensions), ami M. Dariac (Minister for the Colonies). I The members are mainly Radical- , Socialis and are preponderantly Cartellist, tnough excluding the Socialists < who, like M. Demonzie. favour a capital,, levy but who will withhold their sup- ' port pending the development of the Government’s policy. On the other hand a leaning to the J 1 ‘Centre” is revealed in the choice of ■ AL Painleve and AT. Loucheur. The lottor is a millionaire, ami has largely d 14en responsible for the post-war re- c construction of the devastated regions. “Ministry of Calamity!” PRESS CONDEMNS HERRIOT'S ' SELECTION. PARIS, July 20. Judging from the anticipatory newsliper comment, the llerriot Ministry 18s opened with most unhappy aus11ees - The “Journal Des Debats says: il Whereas France needed a national (ijovernment she is only getting a Ministry of national calamity.’’ “Le Temps” declares: — “Instead (f forming a Ministry of National Union for the public salvation, M. llerriot Ims composed a “Cabinet of National Jisunion ' ’ for the salvage of the ‘Left Cartel’.” “Le Temps” predicts a brief span tf further convulsions, and says that then the situation will become grave, jnd then dramatic. . “La Liberte” expects Al. llerriot will meet France’s foreign commitrtients by further inflation. It adds: “Our unfortunate country does not deserve to suffer such depths of calamity and infamy.” 'Even the Paris “Soir,” which sup ports the Left Cartel, doubts AL llerriot s ability to solve the crisis, and it asks what his programme will be, pnd how long will ho last? FRANCE’S DEBT TO BRITAIN. TERAIS CRITICISED. LONDON, July 19. The House of Commons discussed the question of inter-Allied debts.. I Some Labourites strongly criticised the 1 GovernQient ’s action in granting other nations concessions without receiving ’ a quid pro quo. Air Churchill, replying to criticisms, ' explained that Franco had desired theinsertion of the clause in the settlement making payments dependent upon the German reparations, but the British Government consistently declined to admit such a clause. Mr Churchill admitted the Government made concessions, but those should not be exaggerated. The object of settlement was not a desperate effort to save the franc, but was based on a de--sire for a fair settlement taking moral and material considerations into account. A. 31