FINANCIAL POLICY

Otago Daily Times, Issue 23690, 23 December 1938, Page 10

FINANCIAL POLICY

DEFENDED BY M. REYNAUD THE RECOVERY MEASURES INCREASED CONFIDENCE (United Press Association) (By Electric Telegraph—Copyright) PARIS, Dec. 22. (Received Dec. 22, at 11.30 p.m.) M. Reynaud, Minister of Finance, defending the financial policy in the Chamber of Deputies, said that the recovery measures increased confidence and caused stocks to rise by £335,000,000. Government bonds alone recovered £167,000,000. Gold was voluntarily returning to France and the franc continued strong. The exchange equalisation fund had even to support sterling during recent weeks, entirely reversing the previous position. He added that nobody had effectively challenged the policy, which was resulting in increased employment, higher production, and lower interest rates, giving every indication of an industrial revival. M. Reynaud refuted charges of currency inflation, asserting that he 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 the purse strings indicated renewed confidence. Government stocks to-day gained u to 23 points, and banking and industrial shares were sharing in the recovery. '» THE BUDGET PASSED PARIS, Dec. 21. The Chamber of Deputies passed the Budget.