FRENCH FINANCIAL CHAOS.

New Zealand Herald, Volume LXII, Issue 19169, 7 November 1925, Page 11

FRENCH FINANCIAL CHAOS.

FEARS OF BANKRUPTCY. STATE CREDIT QOESTIONEO BOND INTEREST AT STAKE. RECORD FALL TN FRANC. I ANTI-REPUBLIC POSTERS. By Telegraph—Picas Association—Copyright (Received 0.5 r> ttO A. and N.Z. LO\*PO\\ Nov. 5. The Paris correspondent of the Daily Exnress says placards headed " The Republic Means Bankruptcy " were secretly posted in rnanv parts of Paris and provincial cities last night. The Government sent urgent telegrams to the police throughout the country instructing them to destroy the notices and try to trace the authors. It has already I begun legal proceedings against certain ' persons, whose identity has not been disI ' . { closed, for conspiring against the credit of the State. This coincides with the latest fall of the franc, which to-day touched 123 to j the pound (the lowest rate on record, and J recr Vdied to 1221). The correspondent, states that the news- ! paper L'lntransigent reports that the j Paris Bourse is boiling and is delirious J with an accentuated rush to buy foreign | stock. | The Express says the rise in sterling j and dollar shares in Paris is nothing I short of phenomenal. This, together with I the drop in the franc, is partly traceable | to the fact that the margin of inflation i has nearly been reached. ! The weekly statement of the Bank of ! France shows that advances to the State | increased by 1,450.000.000 francs and note | circulation by 1,.332.000,000 francs since | October 30. Le Matin for days past has published a i series of anonymous financial articles ! which have attracted very wide attention. ; To-day it says the country must be told j the truth immediately, namely, that the | State cannot continue to pay interest, on I certain classes of bonds and that the m--1 ternal debt can be funded without either I new taxation or inflation, j This appeal for partial repudiation is sure to be widely opposed. At present it is doubtful whether the new Government will live long enough to introduce its financial scheme. At a meeting of the French Socialist i Party MM. Renaudel, Boncour, AurTol and Mout-"t decided to withdraw their j resignations.