FRENCH MONETARY " POLICY."
It seems probable, too, that the force of the drain has been accentuated by the policy of the Bank of France which has shown less inclination to add to its portfolio of foreign bills. In some quarters, indeed, it is asserted that the Bank of France is desirous of building up a phenomenally strong
gold position with a view to increasing the importance of Paris as a great monetary centre, and it is even reported that when this process of strengthening has been completed steps will be taken to facilitate the flotation of long-dated foreign loans from France, for at present it must be remembered that the placing of French francs abroad, to which I have just referred, has almost entirely taken the form of short-term credits to the various foreign markets. If it should really be the intention of the French monetary authorities to encourage French investments abroad in long-dated securities, it may be, of course, that some relief to the general inter- national financial situation will be felt later on, for it is one of the needs of the present time that centres such as New York and Paris with exceptionally large liquid resources should be employing part of these resources in long-dated loans to countries where fresh capital is urgently needed.
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