FALL OF THE FRANC.

Taranaki Daily News, 11 March 1924, Page 5

FALL OF THE FRANC.

ACTION BY GOVERNMENT. NEW MEASURES NECESSARY. ASSISTANCE FROM BANK. By Telegraph—Press Assn.—Copyright. Received March 10, 5.5 p.m. Paris, March 9. MM. Millerand (President) and Poincare (Premier), and De Lasteyria (manager of the Bank of France), together uith several prominen financiers conferred at the Elysee this morning in regard to measures necessary to improve the financial situation and restore the franc. The Government intends to impress upon the Senate the urgency of passing new financial measures rapidly, to reduce expenditure and end the loan policy. It is understood the Bank of France will continue to associate itself with the Government’s efforts.

TAXATION OF VISITORS.

AKIN TO GOLDEN EGG FABLE.

Received March 10. 7.15 p.m.

Paris, March 10.

Irritation at the fall of the franc is shown by a number of proposals of anti-foreign legislation, including the taxation of 700,000 visitors, who are in Paris annually. It is suggested that they be specially taxed seventy francs a head, but shopkeepers are protesting that it may kill the goose that is laying the golden egg, as visitors will be forced to go elsewhere.

FRANC WORTH TWOPENCE.

ANXIETY IN LONDON.

London, March 9.

The, fact that the franc to-day is worth twopence has attracted widespread attention. The Observer’s city editor says: “The position is causing the utmost anxiety in the city, for it is realised that were France to join the nations whose currency has become practically worthless, the effects would be far-reaching and disastrous.” Depreciation is an alarming sympton whieh has been seen before in many cases of debased currencies in Europe. Three causes have contributed: Firstly, bad national finance, France having borrowed from her people, instead 1 of taxing them; secondly, world-wide speculation; thirdly, currency inflation. The eleventh hour efforts to put the national finances in order have not inspired confidence. The Senate and M. Poincare are at loggerheads, and what may be the outcome it is impossible to foretell. Meanwhile the printing presses are getting busy, and, with rising prices everywhere, the demand for currency grows in volume. DILEMMA OF PREMIER. London, March 9. The Sunday Express says: “The franc m falling and bringing M. Poincare down with it. It is his policy and no other that has knocked the bottom out of French credit. The franc, nominally worth 9|d, would only buy 2d yesterday. On the other hand, Germany’s currency is all but stabilised.” “M. Poincare’s dilemma is that if he wants money from Germany in order to save the franc from collapse, and himself from an ignominious defeat at the coming elections, he must leave the Ruhr and eat every word he has spoken during the last 14 months.”