Evening star. [volume] (Washington, D.C.) 1854-1972, 1925-12-12
Most of Cash Paid for Bond
Redemption Invested in
Alien Securities.
GOVERNMENT IS. SHAKY
IN FACE OF OPPOSITION
Loucheur Measures Apparently
Have Failed to Satisfy Fac
tions in Chamber.
BY the Associated Press.

Hy the Associated Press.
PARIS. December IA trenzied
rush to buy forcing stocks listed on
the Bourse caused Il further sharp
decline today in the franc which dur
ing the morning reached the record
figure of 27.42 to the dollar.
a large part of the % 500. 100000
francs paid out by the treasury In
redemption of short-term bonds on
Tuesday has been invested in indus
trial, mining and oil shares.
The attraction Of such investments.
with the certainty Of automatic proflts
as the franc declines. has been in
creased by the shaky condition OF
the French cabinet, which now is
being attacked systematically by the
newspapers supporting the coalition
of the Left.
The antagonism to the government
inside its own parliamentary majority
has again brought into question the
possibility Of early adoption of meas
ures for financial renovation of the
country.
Outflow OF Capital.
A considerable amount Of foreign
| capital in French banks and branches
Of foreign banks here which was
formerly invested in national defense
bonds, now is being turned into for
| eign stocks.
Finance Minister Loucheur declares
the present decline In the franc is
unjustified and is considering meas
| ures to halt II.
Intimations were given out this
morning that spectators against the
franc might suddenly discover that
! the Morgan loan was still intact in
dollars. Thus far the government
has hesttated to use this fund because
the speculative element in the situa.
ton was insignificant.
Now, however, If 1t appears that
yesterdays drive was due to specula
ton. Finance Minister Loucheur may
decide to repeat NJ. Poincare's opera
ton of 1924. to catch the shorts.
The deadly sins" Loucheur de
scribes the seven bills which make
up his financial rehabilitation plan
apparently are not gaining in favor
with closer examination my member.
OF the finance committee Of the Cham
ber of Deputies. The bills seem tt
contain something displeasing to al
groups in the chamber, including tht
minister's own party.
| counter plans and there probably will
be amendments by the score, thu.
| giving promise of many protractec
sittings of the chamber before the bill.
are finally acted on.
Seek to Pass Expenditures.
Consequently the chambers financ,
| committee is losing no time in en-
| deavoring to try to pass the expendi
| ture section Of the budget before tn.
! end of next week. Then 1t will i'm
| medtately press for a vote for the rev
| enue necessary to balance the budget
| This they believe Is the best wa,
| of steadying the franc.
NJ. Loucheur yesterday told tn,
| finance committee that 1t was the de
sire of the government after the set
! tlement Of interallied debts to max,
fiscal reforms and stabilize the franc
He spent the entire afternoon be
fore the committee giving it's mem
bers an idea of his full proposal, bu
in political quarters it Is asserted
that he failed to convince a rnajorit,
of the committee. The Socialist mem
| bers of the chamber are declared t.
have prepared counter proposals tc
those of NJ. Loucheur, which, If ac
cepted, will make the finance minis
ter's measures completely inopera
tive.
The entire political situation is mos
confused and experienced observer.
are of the opinion that the ministr,
may find itself in such a precariou:
situation when 1t comes before tn,
chamber with its heavy tax increase,
that even hte master skill of Premier
BRAND will fail to save it.