Evening star., 1938-05-04
j. s. JOINS TALKS
FOR STAB|L|z|NC
0FFRENCHFRANC
ConsuIts With London and
Paris for Accord
Amendment.
TREASURY IN PARLEYS
WITH 2 ENJOYS HERE
Long Phone Conversations Also
Held With Officials of France
and Britain.
BACKGROUND

BACKGROUND
French franc, rlthout fired Ual-
ne last tlDo years. has steadily de-
clined, causing repeated cabinet
crises as government leaders face
aggravated problems OF national
defense, finance and labor unrest
resulting from rising cost OF lir-
ing. EdouGrd Daladier became
premier recently NTH purpose OF
ruling by decree until July in order
to solue problem OF the franc
BULLETIN.
PARIS. May lPl.-Premier
Edouard Daladier today announced
devaluation and stabilization of the
French franc in full accord with
the governments of the United
States and Great Britain.
B. the Associated Press.
PARIS, May 4-Offcials said today
tiioG No4Nei edI4oilS udu pteH SldI leC
among the United States, France and
Great Britain looking toward amend
ment of their accord of October
1886, for monetary stabilization
Bankers said they believed the talks
were designed to facilitate a new re-
adjustment downward of the value
OF the franc.
They said stabilization of the franc
at about 35 to the dollar 1856 cents
to the franc and It's to the English
pound was under consideration
The Conversations which were orig
mated by France, had prelude in
last week visit to London by Premier
Edouard Daladier and Foreign Minis
ter Georges Bonnet
Talks at Treasury.
This. officials declared. was followed
by talks at the Treasury in Wash
ington among Secretary Morgenthau
French Ambassador Count Rene ST
Quentin and British Ambassador SiI
Ronald Lindsay.
If the conversations succeed, officials
said, there will be a declarat ton of
new monetary policy by the three
powers. accompanied by f1otation of
Frances projected national defense
loan of 15.000.00O,00o francs (about
s45O,0O0 00O).
Officials explained that an emer-
eency meeting of the cabinet this
morning. convened at the unusual
hour of 8 30 in the presence of Presi-
dent Lezrun. was devoted exclusively
to a study of Frances financial situa-
tion.
NJ Daladier and his finance minister.
Paul Marchandeau, then told the
ministers of the tripartite conversa-
tions
Dollar Exchange Rises.
The dollar. which had remained
nearly stationary in early trading on
the Bourse. later rose to close officially
at 1898 francs (making the franc
worth 295 cents). The pound closed
at 1oS.to IlduCS.
Stocks doomed on the Bourse. Gov
eminent bonds, which ordinarily would
have slumped on prospects of a
cheaper franc. also rose. Traders ap-
parently shared the belief the cabinet
would make an effort definitely to
stabilize the franc at a new level
ending months of monetary uncer-
tainty.
The franc opened on the Bourse at
33l5 to the dollar. only centime
more than Yesterdays official closing
of 1914, but the pound was quoted at
169.875 francs, almost five times more
than yesterday.
Last night M. Daladier. M. Bonnet
and M Marchandeau held long con-
ferences and there we're telephone
consultations with Washington and
London.
A cabinet statement was promised
late today and the premier was ex-
pected to address the nation tonight
Edwin c. Wilson, United States
Charge dAffaires here. saw Foreign
Minister Bonnet at the foreign Office
yesterday.
The Government today ordered a
new two-year plan of increased war
plane construction carried out to
strengthen the air force, the only ma
tional defense arm in which France
admittedly is inferior.
The move was the second increase in
(See FRANCE, Page A-3)