Evening star., 1924-03-16
FRANCS FALL ACHIEVES
WHERE POLITICS FAILED
Poincare Adamant to Allied Statesmen.
Forced to Abandon Policies, Held
Dangerous to All.

! their efforts eventually will be sub
ordinated and nulled, should the
French government persist in policies
generally attributed dangerous to the
stability of the French and conti-
| mental financial system. Consequently
it is but natural that French bankers,
closely allied as they are with bank
ers OF England and America, should
demand modification Of Poincare poll
cies and even go so far as to insist
that the Dawes commission report
be the basis of early settlements with
Germany.
Unquestionably the Poincare gov
| ernment got scare Of its life dur
franc collapsed to further unheard of
low levels. which 1t was in fair way
of doing, then the government would
have been the victim of such insur-
mountable political obstacles as to
end its tenure. The action of American
and British bankers came at the psy-
Geological moment. but not even then
until after there had been adequate
assurances from the fraghteneo
French government that 1t would
minimize. if not completely eradicate
those policies tending to prolong un-
| settled financial and commercial con-
ditions on the continent.
Drop Works for Good.
Whether the raid on the franc was
| initiated by interests inimical to the
French with the idea that no group
| of important world bankers would go
| to the rescue is of little moment, for
the francs plunge evidently worked
results that could not be achieved
by the most eloquent allied states
men. If the franc holds firm In the
| future the recent fall will really
work for the salvation of France. If
the raid was initiated through pro-
German sources as charged by the
suffered great chagrin when the up
ward tendency Of the franc became
pronounced with the announcement
of the large loan from America.
upon the franc with the hope Of fore
ing French capitulation to Germanic
ideas of settlement before Germany
was forced to make further embar-
RAISING pledges to France. 1t failed.
With success, however, unquestion.
ably the Germans could have entered
any deliberation without necessity OF
bartering.
AS the situation prevails at the
moment Germany will know that
eventually from the Ruhr, but not un-
til after the Germans have given fur
ther promises of reparationS pay
ment with adequate guarantees.
Germans Raise Obstacles.
The Germans. according to Paris
advices. have been throwing obsta-
cles in the way of the work of the
Dawes commission recently and this
might give some clue as to the con-
nection between Germanic reparation
desires and the raid on the franc.
However, it is more to be expected
that German resistance to the Dawes
financial plan is born of the desire Of
reich officials to square their ac-
tions with political expediency, par
German elections occasioned by the
dissolution OF the reichstag. Fur
thermore, the proposed gold bank and
it's eventual essential connection with
the bank of issue has caused some
waves of discomfort in influential
circles. There also has been grave
concern as to what will happen when
the industrialists cease their pay
mentS on account Of reparationS af-
ter April Is, as has been threatened
The government is unable to take
them up because Of the serious con-
dition Of the Reichsbank and unless
Germany is able to obtain a loan a
serious financial situation will result
and much of the good work resulting
from the governments effort to sta
biliZe the mark will have been lost
in the chaos that results.
1t is believed that in the final anal
ySis the German government will ap-
prove the findings Of the Dawes COM
mission. When pledges of support
are given the commission findings
will be forwarded to the reparations
commission, where quick action may
be expected thereon in view of the
desire of various governments to
bring an end to the reparations i'm
paSSe.