FRENCH FINANCE CONTROL

Taranaki Central Press, Volume IV, Issue 377, 8 March 1937, Page 5

FRENCH FINANCE CONTROL

BANKING EXPERTS. SPECIAL COMMITTEE. President Will Broadcast National Appeal. Press Association—Copyright, Paris, Match 6. Four banking experts will control French exchange under the leadership of M. Charles Rist, honorary director of the Bank of France, says the Paris correspondent of The Times. The appointment is generally approved, yet paradoxically it stimulate, sales of French currency, as the views of M. Rist and his two coi leagues suggest that the franc will shortly be allowed to find a level near the lower limit, equivalent to 113 to the pound, set by the devaluation lavs 1 . The Government by appointing the committee has changed the monetary policy without changing the Finance Minister. It has simultaneously transferred a delicate task v O m a harassed politician to detached tech nicians.

An indication of the gravity of the situation in France is the fact that President Lebrun will broadcast from every station a "solemn appeal taation” to support the defence ’loan. It will be the first time any President of France has broadcast such - Tan appeal. The loan bonds will guarantee oompensating holders in gold" for every decline in the franc. No French Government has given such a guarantee since the 1926 crisis. The issue of the loan has been postponed at least until March io owing to the necessity of modiTying technicalities in the monetary lam rr garding the free exchange fund. It is expected the essential measures will be passed by March 9. Accordingly President Lebrun’s broadcast has been postponed.