FRENCH FINANCE.

Hawera Star, Volume XLV, 7 November 1925, Page 7

FRENCH FINANCE.

FRANC STILL FALLING. MARGIN OF INFLATION NEARLY REACHED. BY CABLE? —PRESS ASSOCIATION—COPYRIGHT LONDON, Nov. 5. The Paris correspondent of the Dailv Express says placards, headed! “The Republic Means Bankruptcy/ 5 were secretly posted in many parts' of Paris and the ; provincial cities last night. The Government urgently telegraphed the police throughout the country to destroy the notices and try to trace the authors, and has already begun legal proceedings against unknown persons for conspiring against the credit of the State. This coincides with the franc’s latest fall.

•L’lntransigeant to-niglit declared that the Paris Bourse is boiling and is delirious with an accentuated rush to buy foreign stock. The Daily Express adds that the rise in sterling and dollar shares in Paris is nothing short of phenomenal. This, together with the drop in the franc, is partly traceable to the fact that the margin of inflation is nearly reached. The IBank of France ’s weekly statement shows that advances 1 to the State have increased by 1,450,000,000 francs and the note circulation by 1,332,000,000 francs since October 30. Le Matin for days past has published a series of anonymous financial articles, which have attracted very wide attention- To-day it says: “The country mush be told the truth immediately, namely, that the State cannot continue to pay interest on certain classes of bonds. The internal! debt can be funded without either new taxation or inflation. ” . This appeal for partial repudiation is sure to be widely opposed. At present it is doubtful whether the Government will live long enough to introduce its financial schemes.