The recent announcement by M. Poineare that higher taxes were
to be levied in a way defeated his purpose, for it was also a tacit declaration that the Ruhr policy had failed. Frenchmen in thousands began to desert the franc and by dollar and sterling securities. Again, M. Poincare could not demand higher taxation without justifying it—in other words, without explaining the financial straits of his Government. The franc has recovered a little in the last few days, but the same causes which brought about its fall may bring about another and worse fall. We sincerely hope, however, that that will be prevented by a really sensible and practical' scheme from the expert committees under the Reparation Commission. It is because of this prospect that the European situation looks much more hopeful than for a long time past. * * * *
