New-York tribune., 1920-02-09
French EXCHANGE
Crisis Laid to q. s.
And British Action
Stockholders of Bank of
France Told Interruption
of Advances Has Caused
the Alarming Situation

PARIS. Feb. 8.--Georges Pallain,
governor Of the Bank of France, ex-
planning last night to meeting Of
stockholders the alarming situation
with regard to exchange, declared that
1t was caused by the interruption Of
advances from the English and Amer
ican treasnlies, which had thrown the
market on iys own resources at the
moment the burdens of France became
heavier through purchs ses for indus
trial reconstruction. s.s.s.s .N..as5s..s
LIE Journal, commenting on M.
Pallain's declaration, says the difficult
situation is due to the lack of financial
solidarity on the part of the Allies.
In an editorial dealing with the ex-
change situation Andre Liesse, member
weekly financial journal "Economiste, }"
points out that, in spite Of ail the rec
concentrations not to increase imports,
it is impossible to renounce the OBJ
tanning Of raw materials indispensable
to industries and economic resurrection
and foodstutfs such as wheat.
If the reproaches of the United
States that we have shown want of
foresight in our economic and financial
policy since the armistice are exag-
gerated, because our transatlantic
critics are unable to appreciate the
depth and seriousness of our wounds,
many Of them are deseryed,' NJ Liesse
says.
The writer admits that there has
been lack of coherent policy, but de-
clares individual initiative has pro-
duced results, proving ii has been able
TO act. With regard to international
conferences to remedy exchange, M.
Liesse does not seem hopeful. He says: ::
"Opirlons may differ as regards the re-
suits such conferences would give if
they could be held. They could hardly
take positive resolutions, owing to the
private interests involved. 1t is to be
hoped they would not involve too many
delegates, as that would result in fail
are. The delegates should bring def
mite plans from the governments and
the financial, commercial and industrial
groups they represent"
In the suggestion of Carter Glass,
Secretary of the United States Treas
ury, that European countries permit
the export of gold, M. Liesse sees "a
kind Of irony.' lie points out that
the 3,600,oo00O0 francs of frances
gold reserve would not weigh much
in comparison with the 10000 900 900
franc deficit between her imports and
exports last year. England, with her
3,000,0OO,O0O francs OF gold reserve, is
not in much better position, he says
M. Liesse declares he thinks it pos
sible that loans could be raised from
American banks to finance exclusively
the purchase Of raw materials and in
dispensable foodstutfs. He concludes
"America's leading motive is balance
your receipts and expenses A good
commencement will be to reimburse
the Rank Of Franco with part of III ,
forthcoming loan, which will certainly
be an element of confidence in the eyes
OF those from who we demand credit
MADRID, Feb. 8.-Dollars, which
even some of the big banks fail tc
quote on the official lists posted al
their entrances, had their innings last
week. Legitimate business demands
sent the dollar up to 5.S7 on Thursday
1t declined to $50 on Friday and yes
terday hoyered around 5.75.