THE FRANC.
The continued fall in the franc must be reckoned among the factors • exerting an unfavourable influence on markets during the past -week. It is quite true that a fresh flight from the franc means that there is little or no repatriation of French money going on and consequently no selling here of securities iii that connexion: On the other hand, the PolitiCal and financial crisis in France, of which the fall'in the franc is one of the outward expressions, is so serious that'the Stink Markets would gladly welCorne a recovery and fi retifin of the confidence of the French people, even if it meant a gradual repatriation of French funds: At one time on Monday the franc touched the fresh low record of 1334, but there was a rally at the close on messages from Paris stating that the French Finance Minister had given a pledge of economy in the national expenditure, while it was also reported that the French Govern- ment was about to take a strong attitude' with regard to the repression of strike ' movements. Undoubtedly the prime causes of the weakness of the franc are to be found in the failure over a long period by -successive Governments. to effect drastic economies in the National Finances, and also in the Socialistic character 'of the legiSlation under the Bhim Miniitry. Up to the present the French Government does not seem to have discovered the means Tor dealing with the National Finances on lines which, alcir ough involving a general increase in taxation, is of an impartial character, free from any kind-Of mere penalising of capital.
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