5 MAY 1933, Page 39

LENDING TO FRANCE

Not the least interesting development of the past week has been the extensive loan of about £80,000,000 made to France for a short period by a group of bankers in this country. In some quarters this operation has been regarded as being based upon a desire to maintain the stability of the franc. I am inclined to think, however, that it has more to do with the peculiar technicalities of the French Money Market, which from time to time fetters the Bank of France in rendering temporary assistance to the French Government ; but, whatever the motives, there is no doubt of the good security of the Loan nor about the fact that the operation is also an expression of the cordial relations existing between France and this country.