RECOVERY IN THE FRANC.
Among the good features of the past week has been the quite remarkable recovery in the franc. Some two or three weeks ago, and before the formation of the present ministry in France, it will be remembered that the franc practically touched 250 to the £, the movement coinciding with a ministerial crisis. The representative character of the Poincare Ministry undoubtedly tended to restore a measure of confidence, and at the moment of writing the franc has rallied to something like 180 to the £. At the same time, I am bound to add that in the City the recovery is viewed with a certain amount of caution, principally, I think, because M. Poineare has appa- rently failed to give a very clear adherence to the recommen- dations of the Committee of Experts formed some time back to consider the currency problem. No clear plan of stabiliza- tion has yet emerged, while there seems likely to be delay in ratifying the Debt Agreement in Washington. I am not concerned for the moment with the details or the justice of that agreement, but it is easy to follow the argument of th Committee of experts that until these debts have been funde it is impossible to get far with any scheme for stabilizing tilt franc. Meanwhile, a policy of dearer money would seem to hav been'decided upon, the French Bank Rate having been raises from 6 to 7f per cent. *
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