The fall of the franc is, as every Englishman knows,
deeply regretted in this country. It is a new and dis- tressing sign of that very international instability which we all agree we must get rid of before we cart hope for permanent quiet and prosperity. Moreover, the value of sterling always responds, not on a large scale it is true, but none the less sensitively, to fluctuations in the franc. It is therefore to the British interest for us to do whatever we possibly can to help the franc to rise instead of to fall. But, unfortunately, what we can do is all too little. Effects in France have been produced not by British policy or British financial operations, but by France's own optimistic refusal to face the facts. She has not taxed herself seriously ; she has borrowed freely ; she has poured out money on great military and aerial estab- lishments; she has lent money to prospective allies ; she has not attempted to pay her debts. We may be allowed to say this candidly, because we often predicted the inevitable results long before the franc began to move badly in the wrong direction.
