FRANC FALLING AGAIN.

New Zealand Herald, Volume LXIII, Issue 19349, 9 June 1926, Page 13

FRANC FALLING AGAIN.

PREDICAMENT OF FRANCE. RESTRICTION OF IMPORTS. CHECKS ON CONSUMPTION. By Telegraph—Press Association —Copyright. Reuter. PARIS. June 7. There has been a renewed slump in the franc. This is likely to lead to something like the rationing which was in force during the war in France, according to the interpretation by the newspapers of the decision of the Government to restrict imports in order to improve France's balance of payments. Le Journal says bakers will be ordered to close their shops, once a week, and butchers twice a week. Bread cards may even be instituted. Means are also to be devised to prevent the speculative purchase of crops in France by countries with a high rate of exchange. Le Matin says the plan to restrict consumption will probably affect wheat, flour, anthracite coal, petrol and sugar. Furthermore, certain public works may be suspended. , . A statement to the effect that the Government contemplated using the gold reserve of the Bank of France to support the franc was. promptly denied officially, but the newspapers assert that the Government hoped to negotiate a loan with American banks, even if the gold reserve of the Bank of France is not employed as the security, which was at first considered.