FRENCH FINANCE

Northern Advocate, 6 February 1928, Page 5

FRENCH FINANCE

STABILISING THE FRANC

i ARBITRARY ACTION DEFERRED.

OIL ON TROUBLED WATERS,

(United Press Assn. Copyright.) (Received 9 a.m.) PARIS, February 4. M. Poincare’s speech today is r,egarded as satisfying as well as paeify-

Its chief points are that there will be no immediate need for Treasury loan operations, as the note circulation is normal, and relations between the Government and the banks arc satisfactory.

There will be no stabilisation of the franc before the general elections, and no compulsory consolidation of the floating debt by means of a capital levy.

M. Poincare showed himself strongly in favour of further revalorization, consequently stabilising at less than 125 francs to the pound, which is generally considered as the probable rate.

He emphasised that the process must be carried out with the minimum of injustice and danger. Even the present figures presented enormous difficulties. He expressied the opinion emphatically that the hour of legal stabilisation had not yet strueh. When it did, the Government would submit its bill. His statements caused a sensation on the Bourse and a fall in prices, which later rallied. —A. and N.Z.