The internal debt, he went on to say, amounted to
three hundred milliards, of which a large proportion was of very short date. The two possible policies of meeting this internal debt were compulsory consolidation and slow liquidation. Compulsory consolidation meant further inflation, and he therefore rejected it. He fell back upon the proposal of the experts that there should be a bank of issue specially created to redeem the bonds. He recognized that credits could not be obtained from abroad unless France concluded her debt settlements with America and Great Britain. Finally, he pointed out that though he expected the nation to discipline itself, and to submit to restrictions, all these things would not be enough unless he was granted his "full powers" of action. On Wednesday the debate became bitter ; Mr. Caillaux's "full powers" and the proposed debt settlement with America were furiously attacked. The situation is desperate. One cannot even guess what is likely to happen if M. Caillaux's warnings are not heeded.
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