M. Caillaux is- therefore in an extremely difficult position ;
he plainly wants to do the 'right thing, but a :certain - caution even, it - it were not wise would be inevitable; 'since. he has to get a promise of support froni7''pettple who • notoriously dislike direet taxation. All we can say at present is that he is facing realities much more boldly than any of his predecessor's. He said that it was useless to try to stabilize the franc or to make provision for the national debt until the Budget was balanced. He would not therefore reveal his schemes till later for dealing with those great problems. The balancing of the Budget, he pointed out, was more than enough for the present and he emphasized the fact that this transaction by itself was much more difficult • than had been supposed. M: Herriot had- spoken . of this year's Budget as being balanced. But the fact was that owing to the economy of truth which had been • exercised as to the amount of the note issue over and above the authorized maximum,. and to the unwise inclusion of estimated repaiatiOns from Germany which would not reallY be forrtheom'ing' this year, the deficit amounted to as much as £42,000,060. '
