FRENCH FINANCES

Waikato Times, Volume 122, Issue 20491, 6 May 1938, Page 7

FRENCH FINANCES

VALUE OF FRANO FIXED ACTION BY THE GOVERNMENT INFLEXIBLE DETERMINATION United Vrest Assn.—Elec. Tel. Copvrtgtn (Received May 6. 11.45 a.m.) PARIS. May 5. M. Marchandeau announced that the franc has been fixed at 179. M. Marchandeau later explained that it is not stabilisation, but the first operation of a de facto stability, which will be pursued with inflexible determination. backed by the help of all Frenchmen. A special communique gives warning that the Government will not tolerate an unjustified rise in the prices of commodities. The franc is at. present linked only with sterling in fluctuatable relation t the dollar. A DRAMATIC BROADCABT RE-STABILISATION OF FRANC " DRAINED OF ITS LIFEBLOOD ” United Presr Assn.—Elec. Tel. Copyright PARIS, May 5 In a dramatic broadcast to the nation announcing the re-stabilisation of thg franc, the Prime Minister, M. Daladier, declaring that he wanted, as always, to tell the country the whole truth, said the State economy was being " drained of its lifeblood." Appealing for the nation’s confidence, M. Daladier said the national defence loan would give all Frenchmen a chance to demonstrate their patriotism “ as in a plebiscite.” He added: 44 The whole truth Is, our eoonomy Is hard hit. The Budget Inevitably is unbalanced and the Treasury needs are a drain on the national savings. The lowering of publlo credit and the drving-up of private credit are menacing our currency. It is not a question of doctrines or experiments, but of any measure contributing directly to the salvation of the country.” SAFE INVESTMENT NO FURTHER DEVALUATION M. DALADIER'S ASSURANCE United Press Assn.—Elec Tel. copyright PARIS, May 4 M. Daladier, the Prime Minister, emphasised that the nation’s savings henceforth can be invested without fear of further devaluation. On the contrary the value of the franc may possibly increase. The Government's action will form part of a vigorous programme to promote production and trade and the execution of large public works.