The New York herald., 1922-10-30
PARIS BLAMES FALL
OF FRANC ON BRITISH.
Says They Bought French Ex-
change to Purchase Dollars
to Pay Debt Here.

Sp1-,ai Cable to THN NEw YoRK HERALD.
Copyright, 1922. bv THE NEW YORK HERALD
New York Herald Bureau.
Paris. Oct. 60.
The Improvement of the franc in the
last two or three days, after falling
below the years record Immediately after
the parliamentary debate opened on the
country's 1000, 00O.C00 franc budget
deficit, has caused fnanciers to turn
their attention elsewhere for the real
reason behind last weeks m jnetary fluc-
tuation. In Bourse circle, the impress,
sion Is predomina, It that British manip6-
lation may be bls- ned, as the budget
itself is no more ala, ming than it has
been during the last two years.
According to a publication known as
Vidal, British speculation in francs as
preliminary to paying her debt interest
to the United States has been definitely
traced through several weeks, the idea
being that instead of buying dollars
with British pounds at the present rates.
and thereby increasing the variation be-
tween the two standards in British
banks. finance leaders have been buying
UP francs since the beginning of sum-
mer and have used these to buy dollars
on the American market. Whatever
foundation this theory may have, II is
certain that the French Bourse is about
to make exchange transactions possible
only with more rigid control, and
movement is gaining Roadway rapidly
for the creation of an exchange bourse,
such as has been adopted in Brussels
since the war, to prevent unwarranted
fluctuations. especially in commercial
transactions.
1t is certainly peculiar situation when
the pound Keeps up and even improves
during the payment of s45 900, 900 across
the Atlantic, while the franc depre-
ciates despite constant proof that in
terror confidence is undiminished and al
most weekly diminution of the imitation
of the Banque de France. as one writer
points out. II Is estimated that between
twenty-five and thirty billion francs are
lying In French banks. ready for invest
ment.
Four big banks--the Credit Lyonnais,
the Societe Generate. the Compton Ma
tional d'Escompte and the Credit Ma
tional ct Comercial-before the war
totalled about $500. 100000 francs of de-
posits available. Latest reports of the
same banks show 14.500. 100000 francs,
the Societe Generale alone having $780,
900, 900.
As proof of public confidence the Gov
crnment Is pointing out that the new Is
sue OF per cent. Treasury bonds is be-
lns taken UP FASTER IMAM eNpectsu anu n
halt may be called. The limit of the Is
sue. originally fixed at $500, 100000
francs, THE NEW YORK HERALD corre-
spondent is assured. has already been
exceeded, and the financial press is de-
claring that 10000, 00O, 900 probably will
be the new limit. Meanwhile the note
circulation of the Banque de France was
reduced last week by $4,000, 900 francs
and advances to the Government de-
creased 400.000,000.
A novel scheme to reimburse French
Investors in Russian bonds Is provided
by Senator de Villaine in bill to come
UP at the end of the present session.
He would have every holder Of Rus
sian bond receive one-fourth Of the in
vestment Immediately from the French
Government, one-fourth from a fund to
be created by the banks floating loans
before the war and the other so per
cent written off or not asked until Rus
sia is reesta blished NJ. de Villaine ar
gues that this is only just as French
banks and the French Government in
appealing for 5000. .000. 900 francs from
French investors used the slogan:
Lend to Russia and you'll lend to
France"