FRENCH FINANCE

Hawke's Bay Tribune, Volume XVIII, Issue 46, 6 February 1928, Page 8

FRENCH FINANCE

M, POINCARE’S SPEECH. SENSATION OF THE BOURSE. Paris, February 4. M. Poncare’s speech to-day is regarded as satisfying as well as pacifying. Its chief points are that there will be no immediate need for Trea sury loan operations as the note circulation is normal and the relations between the Government and the banks are satisfactory. There will be no stabilisation of the franc before the general elections, and no compulsory consolidation of the floating debt by a means of a capital levy. M. Poincare showed himself Strongly in favour of further revalori. sation, consequently stabilising at less than 125 francs to the pound, which is generally considered as the probable rate. He emphasised that the process must be carried out with a, minimum of injustice and danger. Even at the present figure it presented enormous difficulties. He expressed the opinion emphatically that the hour of legal stabilisation bad not vet struck. When it did the Government would submit a bill. The Premier’s statement caused a sensation on the Bourse and there was a fall in prices, which later rallied. (A. and N.Z.)