Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-07-20
OF FRANC
BRINGS DEMANDS
FOR DRASTIC STEP
Business Nearly Unanimous
in Call for Committee With
DictatoriaI Powers.
HERRI0T CABINETS LIFE
EXTREMELY DOUBTFUL
French Currency Unit Approxi-
mately 30 to Dollar-New Infa-
tion Plan Denied.
By the Associated Press.

By the Associated Press.
PARIS, July 2O.-Deputies in the
Hobbies Of the Chamber today were
more engrossed in the fall Of the franc
than in discussion OF the new cabinet.
Several brought news Of rising I'M
patience among their constituents. e.
pecially the business people, who ap-
pear to be almost unanimous in call
ing for a committee Of public safety
with fun powers to do all necessary
to save the currency.
The opening quotation on the franc
this morning found 1t at a new low
level. At 9:15 o'clock the quotation
on the dollar was 47.2S and on the
pound sterling 23e. At 1920 o'clock
it had fallen still lower. the quota
ton being 47.90 francs to the dollar
and 233 to the pound sterling.
The franc this afternoon went down
to 1888 to the dollar and 240 to the
pound.
Feeling Economic Pinch.
The economic pinch. which is be
ginning to manifest itself in various
In financial circles as the most potent
factor in the exchange situation be
cause OF the influence 1t has on the
general confidence.
The Paris Bourse Of Commerce to-
day took stringent measures to pre-
vent speculation in sugar on pros
pective rise by deciding that no deals
viii be approved at prices higher than
last Fridays closing.
he
effervescence in business circles. but
the franc again weakened under the
impetus of yesterdays slump and went
near the 2-cent mark at 1888 to the
dollar.
sink Industry Speaks.
The silk manufacturers of Lyon, Of
which city Premier Herriot Is mayor.
created q sensation in political circles
by an outspoken address to the
presidents OF the Chamber and Sem
ate and the chairmen of the pariia-
mentary finance committees.
They declare their industry has
been placed in an inextricable situa-
tion, as 1t is no longer possible for
them to adapt their financial resources
to their needs for foreign exchange 70
buy raw materials.
They say the situation Is undoubt-
edly due to the frequent ministerial
changes and procrastination in set
Ting the financial problem. They call
upon Parliament to adopt the plan
of the expert committee which was
appointed under the BRAND regime.
Imitation Rumor Denied.
Rumors that the new government
would soon resort to further imitation
to meet increasing demands for reim-
bursement Of national defense bonds
are denied in Official circles. where 1t
is said the cabinet win under no cir
cnmstances ask for more paper
money.
Finance Minister de Monzie is cred
tied with e. plan for forced conversion
of the whole interior debt, including
the national defense bonds. with
view to relieving the treasury def
nitely of this constant menace.
Premier Edouard Herriot has his
new cabinet today, with Anatole de
Monzie holding the portfolio Of minis
ter OF finance.
My cabinet has bue one aim-the
defense Of the franc said M. Herriot
to President Doumergue when he pre-
Palace.
Asks Nation to BE Calm.
Apart from all uarty spirit. the
premier added, s'the cabinet promises
the country an energetic administra-
ton. It requests the nation to pre-
serve that calm which. to the same
extent as national unity. is one Of the
Indispensable elements for the recovery
Of the franc,
M. Herriot informed the President
that the policy of the ministry would
be described before Parliament on
Thursday.
M. de Monzie, who was minister Of
finance in the Herriot cabinet last
year and urged a forced loan and an
increase in note circulation. while M.
Herriot desires capital levy, said
that the government would not have
recourse to imitation. but at the same
time the minister Of finance would be
helpless without certain latitude and
certain liberty Of action. He added
that when he asked for vote Of cons
fidence in Parliament he would also
ask that means Of action be accorded
It, 50 far as financial questions were
concerned. This was interpreted to-
mean that M. de. Monzie would ask
very much the same full powers Is
Aristide Brands government had re-
quested.
May Move Adjournment.
The request Of such power for M.
BRAND and his finance minister, Jo-
seph Caillaux, led to the defeat OF the
BRAND ministry last Saturday. II n.
dc Monzie's wishes are granted he win
move an adjournment Of Parliament
until October
Among the financial measures ct.
frfhiifed III some Quarters A being de-