FRANC SLUMP.

Hokitika Guardian, 21 February 1924, Page 2

FRANC SLUMP.

AUSTRALIAN AND N.Z. CABLE ASSOCIATION LONDON. Feb. ID The “Daily Chronicle’s” Paris correspondent says—The continuance of the panic on the Bourse, and the heavy selling of francs against- sterling, have created the most serious situation. The Government is dismayed, as it is manifest that the fate of ihe Poincare Government is closely linked to the exchange problem. There lias been a marked change in the feeling in favour of M. Clemenecau, whom many of his lame political foes are now discovering is a man eminently qualified to save tho country in the present crisis. It is understood President Millerand would gladly entrust a ship of State to tlio pilotage of the S2 year old ex-Premier. Tim “Daily Telegraph’s” Paris correspondent says:—“France is undoubtedly passing through a disagreeable period. The economic victory of the Marne,” which is how tho effects of the Ruhr occupation used to be described, lias not produced the expected results. Parliament is making a bad impression, owing to its way of dealing with the financial prpoosals intended to restore Fiance’s currency. Prices are steadily rising. Consequently. there is an outburst of criticism of tho Government. A demand is growing for tho usual "strong man.” Certain proople declare M. Clenioneeau is the man to save tho situation.

A CRITICAL SITUATION

LONDON, Eeb. 20

The sensational fall in the franc, involving something like a panic on the Paris Bourse is again concentrating attention on the position of the Poincare administration, and the

whole question of the reparations settlement.

The “Daily Telegraph’s” diplomatic correspondent says :—“lt transpires that momentous, though very private, cimversatidns 'occurred on Saturday between Mr Snowden (Chancellor of the Exchequer) and the British experts regarding the prospects of the Committees which have been sitting in Berlin. Sir F. Bradbury and Herr Schaeht have also conferred in London during the week-end. The general impression prevailing at the end of the conversations (lid not reflect any unduly optimistic strain. There is a

possibility of serious divergencies oi opinion among the experts themselves, apart from the difficulties w hid may he created by certain Governments.”

I The "Daily Telegraph” says:— ' Moreover there is a growing feeling in British financial circles that this conn- ' try, in the present circumstances, can ill afford to mobilise foreign loans on ally considerable scale, unless with the purpose of directly financing British exports, by requiring the loans t« he expended upon purchases here. At the same time,' the failure of the experts and the Allied Governments to reach a unanimous or a quasi-unani-inous agreement, would connote a mournful outlook for Europe. Germany’s financial rehabiliation, by means of the renten-nmrk, has lteen little short of miraculous, but a general settlement, enabling Germany to obtain liberal foreign credits, must he arrived at during the next lew months, because the renten-mark will not be able to maintain itself indefinitely.