France's Defence Loan The French Government's National Defence Loan, of
Lio5,000,000, by which the Treasury's financial needs will be covered, is a successful attempt to meet the attacks of the Right and a critical financial emergency. M. Blum's broadcast speech on- Sunday, explaining his proposals, has been, followed by a rise in_ renter and by selling of securities in London by Frenchmen. anxious to participate. in the loan. British and American investors are also exps-cted to subscribe, and the success of the operation seems to be assured. The loan is accompanied by cuts in expenditure and by promises to add no further to demands on the Treasury ; but, as M. Blum has explained, these concessions to the Right do not imply any contradiction with the Front Populaire's political programme. He might claim, indeed, that the cuts are the logical consequence of the success of increased Government expenditure in stimulating economic revival. On this basis, M. Blum secured a majority, from Right and Left, of over 40o in the Chamber on Tuesday, and the measure went safely through the Senate on Wednesday. The Prime Minister has further strengthened his political and financial position by entrusting control of the Exchange Equalisation Fund to three experts, including M. Charle3 Rist ; the franc will probably be allowed to fluctuate between its present level and a lower limit of 112. There can be no doubt of the success of these measures in stimulating a revival of confidence.
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