THE FRENCH SITUATION

Hokitika Guardian, 22 July 1926, Page 2

THE FRENCH SITUATION

[Copyright to Australian Press Assn.)

A POLITICAL COLLAPSE. PARIS, July 20

The situation, as the result of the collapse of tlie franc has passed the stage of the mere economic, and it now revealing a political situation of the most dangerous type. It is such a situation as might be the prelude to a social upheaval. DL Herriot’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 franticallv selling stocks in order to buy shares, which are independent- of tlie value of the franc. HERRIOT’S DIANIFESTO. Tlie New French Cabinet sat for manv hours discussing the financial prospects and also the Ministerial declaration for submission to the Chamber of Deputies on Thursday. Meantime; M. Herriot, flic Premier, has issued a manifesto saying that the Govenment’s single aim is defence of France outside all party spirit. He promises to be energetic. He asks Gf the country tranquility, which he describes as being important as are Hie national labours. .

An impression prevails that DL Herriot will seek for a- vote of confidence and for “constitutional powers” certain purposes, after which the sqsr sion will bo closed and tlie Chamber and tlie Senate dispersed for the holij( days. The question is: Will a vote of confidence be forthcoming? ■ It is imported that dissensions have already been revealed in the Cabinet. It is rumoured that the new Finance Dliuister, DL Demonzie, lias resigned, but this is denied. The atmosphere in the lobbies and the Chamber of Deputies yesterday afternoon - was thoroughly had to DL Herriot. 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 tlie then rate of exchange may be tempted to get out of tlieir contracts, regardless of the losses of the overseas importers.

HERRIOT’S FALL EXPECTED EARLY. LONDON, July 21. The “Daily Herald’s” Paris correspondent thinks that the 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. •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 they 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 aro my gold .reserve. I shall not sell until I know the price at which I can > replenish my stock, so I am putting np the shutters.” • RUMOURS OF DICTATOR. LONDON, July 21. j

Perhaps the most significant danger signal in France is a growing panio .>vamongst the peasantry. Thus ant peasants in the Biarritz district refuse to buy or sell, saying: “The franc has fallen thirty points in a single day, and it is impossible to fore-, tell the future.” .

The wildest rumours are being circulated in the district, including a statement that Marshal Retain has been proclaimed Dictator. The rumour ■ 4 was denied, but eonfulence. has not been restored. FOREIGNERS BLAMED. LONDON. July 21. Visitors to France report that there is a growing ill-feeling exhibited towards unfortunate tourists, whom tho French people apparently regard as the authors of their troubles. For several days the motor coaches containing the foreigners who are touring Paris have been greeted with catcalls and insulting cries, wliidi the majority of the occupants, fortunately, were not v able to understand. 1

FOREIGN CURRENCY SOUGHT. 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, hut the strongest antipathy felt, is that against the Americans, who are being openly blamed for France’s ills, owing to tbe Washington Government’s debt policy.

There have been some attacks on foreigners in tlie Montemartc* cafes.

The paper “La Liherte,” suggests that every foreigner entering France should lie compelled to pay a special tax in liis or her own currency.

TOURISTS DIOBBED. 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 policman had to draw his revolver and to call for assistance. Two of the police were injured before the trouble ended. '

FRANC VALUE. LONDON, July 21 The franc opened at 244.

NO CONFIDKNE LN HERRIOT,

[Reuter Telegrams.]

(Received this day at 11.0 a.md

PARIS, July a}The excitement in the loblKUPfi*d in tlie Chamber was more intense even than yesterday. A feature of tbe situation has been the tendency towards a further splitting of parties.-

A meeting of Radical Socialists formed an inter-party group to promote tinj idea of a Ministry of National Union. The Socialists have not yet decided to support Premier Herriot.

It is even suggested the Government may he unable to meet Parliament, because it is unable to count on all the support whereof it was assured. , LONDON. July 21. < The latest messages states Premier Herriot was beaten on a vote of confidence.