M. Painleve was almost submerged by his difficulties when the
Socialists decided, after all, provisionally to support him. He is; - -first of all, under an obligation to find the money to meet the payments due on internal debt at the beginning of December. -Properly he can do it only by rapid and heavy taxation, but 'the whole French nation invariably resents more direct taxation. M. Painleve has therefore proposed that the Bank of France should be authorized to exceed the amount which it may now advance to the State. He explains that this would not really mean inflation, as the Bank has a margin in hand, and there need be no new issue of notes. To strict economists that seems to be a distinction without a difference. The results, of course, would be just the same as under actual inflation. M. Loucheur has tried to come to the rescue by suggesting a moratorium, so that the honouring of the Government's debts would be post- poned and the interest payable would be reduced. This proposal is .palpably a kind of repudiation, and as such it has been very badly received. * * * *
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