THE FRANC SLUMPS.

Manawatu Standard, Volume LVII, Issue 195, 19 July 1937, Page 7

THE FRANC SLUMPS.

“PANIC” RATES QUOTED,

M. BLUM MAY RETURN,

LONDON, July 18. Before a steady flood of selling orders from l’aris, the franc slumped yesterday to the lowest level since 1920. “Banic” rates are quoted tor forward francs at three months’ discount reaching over six francs. Banking and commercial interests in London and Paris are bewildered. Some are critical of the failure of the authorities to intervene. r l he uncertainty is increased by rumours of dissension in the French Cabinet. Some have declared that the Minister of Finance (M. Georges Bonnet) is resigning, and the belief is growing that the Popular Front Government is breaking up. Speculators are talking down the franc to 140 to the pound. The Socialist Congress vote at Marseilles, approving M. Leon Blum s measures, and demanding that the Prime Minister (M. Camille Cliautemps) carry out the Labour Federation’s programme of control of credit, and the nationalisation of transport, insurance and other industries, has unsettled the Bourse. Labour unrest In Paris is another factor. Well-informed circles believe that the Socialists will endeavour to bring back M. Blum, with an intensive programme of social reform expenditure. Until the political uncertainties are eleared up the future of the franc will remain obscure. Despite the international and f rench uncertainties, the Stock Exchange broke up in a more cheerful mood, though prices scarcely reflect the more optimistic feeling- Trade returns are considered to be most encouraging.