BUSINESS CHAOS.

Grey River Argus, 22 July 1926, Page 5

BUSINESS CHAOS.

GROWS IN FRANCE. Politics Follow Suit. TRADERS BEWILDERED. BUSINESS”HELD UP. LONDON, July 20. The French franc opened at 232 to £1 to-day. PARIS, July 20. Prices arc soaring as the franc falls. The traders are becoming nervous. The Sugar Exchange decided not to permit transactions at prices exceeding the closing rates on July 16. Silk manufacturers of Lyons telegraphed the Presidents of the Chamber and the Senate declaring the fall of the franc places the silk industry in A POLITICAL COLLAPSE BE J (Received July 21 at 7.40 p.m.) PARIS, July 20. The situation as the result of the collapse of the franc has passed the stage of fiie mere economic, and is now revealing a political situation of the most dangerous type. It is such a situation as might be the prelude to a so cial upheaval. M. llerriot s Government has completely failed to inspire confidence. The optimists say that it may last for a week. On the Paris Bourse, many speculators are franctically selling stocks in order to buy shares, which are independent of the value of the franc. HERRIOT’S MANIFESTO. PARIS, July 21. The New’ French Cabinet sat for 1 many hours discussing the financial prospects and also tKe Ministerial declaration for submission to the Chamber of Deputies on Thursday. Meantime, M. llerriot, the Premier, Jias issued a manifesto saying that the Government’s single aim is defence of France outside all party Spirit. He promises to be energetic. He asks of the country tranquility, which he describes as being as important as arc the national labours. HERRIOT’S PLANS. WILL HE FAIL? PARIS, July 21. Atfi impression prevails that M,. Herriot w’ill seek for a vote of confidence and for ‘ i constitutional powers” for certain purposes, after which the session w’ill be closed and the Chamber and the Senate dispersed for the holidays.

The question is: Will a vote of confidence be forthcoming? It is reported that dissensions have already been revealed in the Cabinet. It is even rumoured that the new Finance Minister, M. Demonzie, has resigned, but this is denied. The atmosphere in the lobbies and the Chamber of Deputies yesterday afternoon was thoroughly bad to M. Jlerriot. There is also hostility to him in the press opinion. There is now a growing anxiety in Britain as to whether the French merchants who sold goods months ago at the then rate of exchange may be tempted to get out of their contracts, regardless of the losses of the overseas importers. Meantime, presumably to prevent alarm, the Post Office* has forbidden the broadcasting of the prices of currency, stock, shares, and commodities.

Herriot’s Fall. EXPECTED EARLY. LONDON, July 21. The “Daily Herald’s” Paris corres pondent thinks that tue new Government may meet with instant defeat on Thursday. The “Herald’s” correspondent forecasts the advent of M. Poincare, as Premier, whose obstinacy during . the Ruhr period is being recalled as indicating the qualities that are required at present. BUSINESS IN CHAOS. PRICES MERE GUESSWORK. LONDON, July 21. Many of the Parisian shops have removed their price labels from the goods, and they now charge their customers according to their appearance. If thev are rich French people, they must part the full prices. If they are foreigners they pay rather more. Another manifestation of anxiety is that the business people, both wholesale and retail, are taking their holidays. They explain: “My goods are my gold reserve. I shall not sell until I know the price at which I can replenish my stock, so I am putting up the shutters.” . an inexplicable position, and urging th. currency he stabilised by the adoption of the plan proposed by the recent committee of experts. The Havre Cotton and Coffee Brokers’ Associations decided to restrict operations. The Post Office has prohibited the inclusion of quotations, exchange rates and stock prices in the wireless bulletins. A number of luxury shops in Pans arc threatening to close in the summer, as fluetuations of the franc make business risky.

rumoursofAmctator. PEASANTS IN A PANIC. LONDON, July 21. Perhaps the most significant danger sianal in France is a growing panic amongst the peasantry. Thus ignorant peasants in the Biarritz, district refuse to buy or sell, saying: lhe franc has fallen thirty points in a single day, and it is impossible to foretell the future.” The wildest rumours are being circulated in the district, including a statement that Marshal Petain has been proclaimed Dictator. The rumour was denied, but confidence has not been restored Foreigners Blamed. VISITORS MEET MARKED HOSTILITY AMERICANS HOOTED. LONDON, July 21. Visitors to France report that there is a growing ill-feeling exhibited towards unfortunate tourists, whom the French people apparently regard as the authors of their troubles. For several days the motor coaches containing the foreigners who are touring Pans have been greeted with catcalls an _ insulting cries, which the majority of

the occupants, fortunately, were not able to understand. ECONOMIC EFFECTS. PARIS, July 21. Already the luxury shops are closing down, as" trading is impossible in the face of the soaring prices. The shopkeepers in Paris are beseeching English and American tourists to pay them in pounds or dollars, or in anything rather thaT francs. On the other hand, many of the visitors are most unpopular, as their purchases are undoubtedly driving up the prices in France.

foreign currency sought. TOURISTS HOIST PRICES. PARIS, July 21. Purchases in France by the tourists are driving up prices. . Many Dominion people are visiting Paris and the French watering places. They are suffering inconvenience, but the strongest antipathy felt, is that against the Americans, who are being openly blamed for France’s ills, owing to the Washington Government’s debt policy. There have been some attacks on foreigners in the Montemarte cafes. The paper “La Liberte,” suggests that every foreigner entering France should be compelled to pay a special tax in his or her own currency. TOURISTS MOBBED. (Received July 21 at 8.5 p.m.) LONDON, July 21. A Paris report states that in one case one hundred Frenchmen from cafes nearby, surrounded a motor car and began to draw out the sightseers within. A policeman had to draw his revolver and to call for assistance. Two of the police were injured before the trouble ended.