FRANC LOWEST SINCE 1926
Crisis For Popular Front CABINET DISSENSION REPORTED M. BLUM MAY RETURN TO LEADERSHIP (United Press Assn.—Telegraph Copyright) (Received July 18, 6.30 p.m.) LONDON, July 17. Before a steady flood of selling orders from Paris the franc has slumped to its lowest level since 1926. “Panic” rates are quoted for forward francs at three months, the discount reaching over six francs. Banking and commercial interests in London and Paris are bewildered; some are critical of failure of the authorities to intervene.
The uncertainty is increased by rumours of dissension in the French Cabinet. Some have declared that the Minister of Finance (M. Georges Bonnet) is resigning and the belief is growing that the Popular Front Government is breaking up. Speculators are talking down the franc to 140 to the £. The vote of the Socialist Congress at Marseilles, approving M. Leon Blum’s measures and demanding that the present Prime Minister (M. Camille Chautemps) carry out the Labour Federation’s programme of control of credit and nationalization of the transport, insurance and other industries has unsettled the Bourse. Labour unrest in Paris is another factor. 4 Well informed circles believe that the Socialists will endeavour to bring back M. Blum with an intensive programme of expenditure on social reform. Until the political uncertainties are cleared up the future of the franc will remain obscure.
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Bibliographic details
Southland Times, Issue 23255, 19 July 1937, Page 7
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224FRANC LOWEST SINCE 1926 Southland Times, Issue 23255, 19 July 1937, Page 7
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