Recovery in France On Monday M. Reynaud, the French Minister
of Finance, gave an extremely encouraging report on the results of his financial measures. They had, he said, already achieved more in a shorter time than M. Poincares measures in 1926: the franc had been saved, capital was re- turning to France at an increasing rate, production had risen in key industries, and the gold in the possession of the exchange stabilisation funds was ten times more than it had been a year ago. M. Reynaud, however, while satisfied with the progress that has been made, admitted that a return of business confidence was still needed, and attributed its lack to the continued uncertainties of the international situation. Yet he quite rightly asserted that the progress of recovery in France, psychologically as well as economically, made an immediate crisis less certain. Indeed, one of the chief factors in avert- ing such a crisis has been, and will continue to be, the confidence of M. Daladier's Government in the face of Italy's Mediterranean demands. As M. Reynaud said, the assurance that any aggression against France would plunge Europe in blood is the surest guarantee that Italy's claims will not be pushed to a point which makes negotiation im- possible. The confidence and optimism of M. Reynaud's speech will be as welcome in this country as in France.
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