INCREASED CONFIDENCE.

Manawatu Standard, Volume LIX, Issue 21, 23 December 1938, Page 7

INCREASED CONFIDENCE.

FRENCH STOCK BOOM. ~PARIS, Dec. 22. The Minister of Finance (Mr lleynaud), defending his'financial'policy in the Chamber, of Deputies to-day, said that the recovery measures had increased confidence and caused stocks to rise t0£335,000,000. Government bonds alone recovered £167,000,0CX), and gold was voluntarily returning to France. The franc continued strong, and the Exchange Equalisation Fund had even had the support of sterling in recent weeks, entirely reversing the previous position. The Minister added that nobody had effectively challenged the policy which was resulting in increased employment, higher production and lower interest rates, and giving every indication of industrial revival. M. Reynaud refuted charges of currency inflation, asserting that he had merely utilised the influx of capital which was voluntarily placed at the Government’s disposal- It was essential for France to know that her position was improving. A general loosening of purse-strings was indicated with renewed confidence. M. Reynaud said that Government stocks- to-day gained If to 22 points, and banking and industrial shares were sharing in the recovery.