Financial Notes
FRENCH MONETARY POLICY.
APART from a few Industrial and Speculative descriptions, the Stock Markets have experienced a•quiet three weeks, the dis- turbing influences being the length of the account, the Whitsun holidays, and last, but by no means least, uncertainty with regard to the monetary outlook. This last factor is, as I explained last week, being largely dominated for the moment by the French monetary policy.-- stated, the French monetary—and, it might almost ith equal truth be said the French political—authorities, have 'decided that the interests of the country are best served at the moment by " pegging " the franc artificially at 124 instead Of an out-and-out stabiliza- tion scheme, and a consequence - of that policy is complete failure to arrest speculative purchases of the franc, which would be checked automatically by a sound scheme of sta- bilization. Apparently, however, for political ends, French politicians wish to defer stabilization until after the next elections, and meanwhile are harassed by the inconveniently large demand for the franc which, as I explained later, is resulting in the Bank of France obtaining the control of a colossal total of foreign credits.
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