THE FRENCH CRISIS

Hokitika Guardian, 21 December 1925, Page 2

THE FRENCH CRISIS

A NEW SCHEMAS

(Australia & N.Z. Cable Association.]

PARIS. December 18

A group of prominent industrialists presented President Doumergue with a scheme intended to save the tranc and stabilise the finances.

President Doumergue is reported to he elated, and XI. Briand declared the scheme gives the Government great international power. Meanwhile XI. Herriot uncompromisingly opposed XI. Doumer, who was responsible for the dowiilnll of the Herriot Government.

The plan whereby the leaders ot in dustrv shall come to the rescue as a solution of the financial crisis has been submitted to President Doumergue by the Nord industrialists. It is suggested that all the French industrialists shall float a ten milliard franc loan, both at home and abroad, secured on one-tenth of the business turnover of French industry.

President Doumergue was touched by the offer. The plan is already in the early stages of discussion with .Ministerial quarters. LONDON, December 19.

The "Daily Express’s” Paris correspondent reports that when the scheme was detailed to Premier Briand he exclaimed: “At last there is a gleam of hope for us.” XI. Briand was profoundly moved and declared: “ XVliat you have proposed is going to strengthen France with a now force in international deal mgs. The initiators of the scheme in sist that it will be a voluntary effort to save France and stave off the inflation of her currency. It is French industry throwing itself into battle.

French financiers are now openly expressing their admiration for the German decision to scrap their billions of paper marks, and to create the Renteumark. which they had stigmatized at the time as the greatest psychological swindle ever perpetrated. According to the newspaper “ Tntransige.'int” the Lyons silk trade, and also the metal industry, will join in the effort.

Various important groups of French industry, including the silk and metal trades, adhere in principle to the plan of He Northern Industrialists, who chiefly are textile manufacturers, and those most vulnerable to the fluctuations of the franc. The loan would be purely a voluntary effort, launched as pecially in America, the proceeds of which would form a sinking fund for Ihe amortization -of the public debt. It. is hoped thus to avoid the necessity of any crushing new taxation such as that proposed by the various Finance Ministers and to restore confidence in the future of the French State. The finance plan has generally been favourably received.

In consequence of the French iudus trialists’ offer, the franc in London has further appreciated to 12-51 to £l, hut subsequently it relapsed to 126 J.