New Britain herald., 1926-06-28

 is certain. The Bank of France is funcioning, but not in perfect &C., cord with the ideas of government functionarIes, granted any two can be found with the same idea as 10 what Is to be done. Caillaux is ex- pected to bring order out of this chaos.
 Friends or France will wish him good fortune. Ultimately some way must be found to get out Of the f. nancial slough. Caillaux at least is better equipped than any of his countrymen to evolve a successful plan. If he fails then there is ground for the belief that nobody will be found to turn aside the dangerous financial menace, and the route travelled by the neishbor across the Rhine will be imminent.
 The plan bruited in some quar- ters is a revaluation of the franc at about its present level with the Bank of France being required to pay in gold at the revalued basis of the franc. This seems like a reasonable and logical method. all though a bitter pill to swallow. If Caillaux retains the support Of the moderates and forgets the partisan Socialists an important step for ward will be taken,
 The first concrete move Of Gail laux has been 10 depose NJ. Rob ineau. governor of the Bank of France, and name N. Moreau, for mer general director Of the Bank of Algeria. in his stead. Robineau no doubt has been a trouble maker rather than a pacfler dur ing the recent past. How he work ed with the government during the time when Pcret was finance min ister can he gIimpsed from the fact that his quarrel with Pcret precipitated the latter's withdrawal from the cabinet. an incident that accelerated the fall of the ninth Briand ministry. Robinoau had re- fused to lend the moral support of the bank to the governments fight to maintain the franc. By naming NJ. Moreau it is the object of Gail laux to use the gold and silver re- serve of the bank, totalling 5,ooo,- 000,oOo francs. as weapon against the speculaors who have depressed the national currency.
 By deciding to stand with Prem- fer Briand and Ambassador Beren- ger for an early ratification of the Mellon -Berenger debt settlement agreement CaiIlaux adds to the hope that final ratification is not far distant. The debt agreement will be held up in Congress until the next session because of the dc lay in ratification in France. The French government will have 10 be the first 10 ratify the agreement, and the fact Caillaux fayors if as It stands yields at least an eXpcc- tation this will matarialize. Objec- tions 10 the agreement in France have centored around the point Caillaux raised when he headed the French debt mission to this coun- try about a year ago, namely that French payments should be prcdi- cated upon German reparations payments A sinister drawback in the French Chamber is the oppo- sition of the Radical Socialist bloc, the strongest party there, 10 the agreement as it stands. Unless Gail laux obtains support from the Right Wing parties this week the first rift in the lute will occur when the new Caillaux symphony is started. This chief motif is to use the outstanding paper money with floating indebtedness, encour- aging the use of short term gov crnment obligations as q circulation medium. They are already consid- cred in the same category by most banks, but holders have a habit Of presenting them al maturity for payment in gold. It is this feature that Caillaux plans 10 avoid. The scene is one tending toward inda- lion. NJ. Robineau opposed the plan because it may involve the issuance of 100.00o,00O.oOO francs in paper money if all the holders or the 45,o0o,000,00O francs in de fense bonds demand redemption. Caillaux believes only a part of the holders will demand redemption if tbo bonde 1re r~rouDcd u.ith cur roncy,
 Caillaux at any rate IS not start ing as conservative in financial matters. He al least is courting in- fation, the only doubt being as to the quantity.
 
 Report of the motor vehicle de-