FRENCH FINANCES.

Manawatu Standard, Volume XLV, Issue 287, 7 November 1925, Page 9

FRENCH FINANCES.

SLUMP IN THE FRANC. LONDON, Nov. 5. Tlie Daily Express’s Paris correspondent says tliat placards headed: “The Republic Means Bankruptcy,” were secretly posted in many parts ot Paris and provincial cities last night. The Government urgently telegraphed tlie police throughout the country to destroy the notices and to try to trace the authors, and nas already begun legal proceedings against unknown persons for conspiring against the credit of tho State. This coincides with the franc’s latest fall. The Intransigeant to-night declared that the Paris Bourse is boiling, and is delirious with the accentuated rush to buy foreign stock. The Daily Express adds that tho rise in sterling and dollar shares in Paris is nothing short of phenomenal. This, together with the drop ill the franc, is partly traceable to tlie fact that tho margin of inflation has been nearly reached. Tlie, weekly statement of the Bank of Franco shows that advances to the State have increased by 1450 millions of francs, and file note circulation by 1332 millions since October 30.

The Matin for days past has published a series of anonymous financial articles, which have attracted the widest attention. To-day it says that the country must be told tlie truth immediately, namely, that the State cannot continue to pay interest on certain classes of bonds, and that tlie internal debt can bo funded without either new taxation or inflation. This appeal for partial repudiation is sure to bo widely opposed. At present it is doubtful whether the Government will live long enough to introduce its financial schemes.— A. and N.Z. cable.