M. Caillaux is still struggling with adversity. His Finance Bill,
however, has been passed in the Chamber and the Senate. The French Government has to find very large sums to meet various blocks of short term loans and bonds that mature this year, and the fresh expenditure in Morocco must be very heavy. He has had to consent to the permanence of the inflation of four milliards, which in April he said should be tem- porary, and even increase it by authorizing the Banque to issue further six milliards of notes. He finds it necessary to tempt investors to reinvest the money now in loans to be paid off by issuing a new loan with a guarantee of interest to be paid at the parity of the dollar at the date of issue. This is the first public confession of want of confidence in the franc. We deplore the necessity but approve the determination to face disagreeable realities. On Wednesday the franc was quoted at 108 to the £.
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