Evening star., 1926-04-16
PERET LINKS FRANC
PLUNGE WITH DEBT
Convinced Sterilization Can
Come Only After War Loan
Issue Is Solved.

By the Associated Press
PARIS. April 16.--The speed with
which the Senate is disposinS of the
budget bill makes it seem likely that
NJ. Peret. minister of finance, can be-
gin preliminary debt conversations
with Winston Spencer Churchill.
chancellor of the British exchequer, in
London, by next Monday. Afterwards
he can. if he desires. utilize the parlia-
mentary vacation for a flying trip to
the United States. probably in June,
on a similar mission.
NJ Peret Is convinced there can be
no real stabiliZation of the franc,
which today dropped to the lowest
lovel ever known-until the war debts
question Is in fair way TO solution
He is anxious to supplement his sue.
cess OF finally forcing the chamber.
after various other finance ministers
had failed, TO vote balanced budget.
Peret Tactics Differ.
Word from Washington leads the
finance ministry officials to believe
that Henry Berenger, the French Am
ba ssador at Washington. already has
made appreciable progress in his in
formal talks on the debt situation
and that NJ. Peret, when he goes TO
Washington, will find the ground we'll
prepared for a more profound discus
sion. The new finance minister will
be found a negotiator of kind en-
tirely different from Joseph Caillaux
1t is said in official quarters that he
will not consider debt settlement as
"a poker party"
NJ. Peret Is an earnest, nervous,
wiry. little man. He lacks NJ. Gail
iaux' spectacular qualities and also
his predecessor knowledge of Eng
lish.
The newspapers today are so occu.
pied with the rapid fall in the value
of the franc and so lost in fulmina-
tions against those responsible for the
crisis that the announcement of NJ.
Peret's projected visits to London and
Washington has caused no excitement
among them.
For the second day in succession
the franc went to a new low level.
The official Bourse closing quota
ton was 26.73 tot he dollar and 144.o0
to the pound sterling.
Goes Below Closing.
The franc was extremely sensitive
during the day, fluctuating 40 CEN
portant transactions. 1t opened sew
eral points better than yesterdays
closing Of 29.61 to the dollar and 1880
to the pound. Then it weakened. only
to strengthen again toward noon.
Upon the official opening Of the
Bourse. however, demands for pounds
and dollars sent it back below yester
days closing.
There are as many different eX-
plantations for the weakness of the
franc as there are authorities COM
petent to judge. The sale of francs
by London and Brussels to protect
the pound and Belgian franc and by
Milan to protect the lire was given
in some quarters. Banking author
tiles consider the delayed buying of
foreign exchanges to cover payments
for importation Is the chief element
in the situation.
Importers Waited Long.
A great many importers waited for
the balancing of the budget to cover
their requirements. hoping for i'm
provement in the franc. The result
was far less marked than had been
expected, and when it became neces-
sary for belated covering to be done
Quickly the situation of the Belgian
franc complicated the market, as the
Belgians began selling French francs.
Since then London and Milan also
have shown a bearish tendency to
the French franc, although New
York was relatively favorable. Re
ports Of speculation against the
French exchange are regarded in
Bourse circles as unfounded in the
main. The real factors in the fall
of the franc are considered the un-
certain political situation and the
fact that sufficient French francs
were held in London and Brussels to
weigh on the market at time when
French importers needed dollars and
pounds.